Core Insights - Malibu Boats, Inc. has launched the 2026 Malibu Wakesetter 22 LSV, which features significant enhancements in wake sports performance, technology, and onboard comfort, setting new industry standards [1][2] Company Overview - Malibu Boats, Inc. is a leading designer, manufacturer, and marketer of a diverse range of recreational powerboats, including performance sport, sterndrive, and outboard boats [4] - The company is the market leader in the performance sport boat category through its Malibu and Axis brands, and holds leading positions in the sterndrive and saltwater fishing boat markets with its various brands [4] Product Features - The 2026 Wakesetter 22 LSV includes a bold redesign with features such as the exclusive Power Rise & Slide Helm Seat, a 15.8" touchscreen Command Center, and upgraded wireless phone chargers [2] - The model is available with customizable Wake Plus or Diamond hulls, designed to deliver the best wakes and waves for all riding styles [2] Innovation and User Experience - The new model incorporates over a dozen breakthrough features based on user feedback, emphasizing Malibu's commitment to innovation and performance-driven design [3] - Professional wakeboarder Tarah Mikacich praised the intuitive design and performance of the new 22 LSV, highlighting its ease of use and enjoyment [3] Availability - The 2026 Malibu Wakesetter 22 LSV is now available for order through Malibu's worldwide dealer network, with an interactive 3D Boat Builder available for customization [3]

How do you see Malibu boots after you spent a year there. And as we come to like an inflection point, maybe for four rates, is that important to you. Rates are important, important to us.I see Malibu boats in a good position. Matt, honestly, you know, as we were, you know, looking at the market and the consumers is, you know, still struggling a little bit with the elevated rates and so on, We're in a good position. We have capacity. We have invested in our capacity over the last few years.We have new models ...

Core Insights - The article emphasizes the investment philosophy focused on small cap companies, highlighting the importance of identifying mispriced securities through understanding financial drivers and utilizing DCF model valuation [1] Group 1: Investment Philosophy - The investment approach is not confined to traditional categories such as value, dividend, or growth investing, but rather considers all prospects of a stock to assess risk-to-reward [1] Group 2: Market Focus - The investment strategy encompasses markets in the US, Canada, and Europe, indicating a broad geographical focus for potential investment opportunities [1]

Core Insights - Malibu Boats (MBUU) reported revenue of $207.04 million for the quarter ended June 2025, marking a year-over-year increase of 30.5% and exceeding the Zacks Consensus Estimate of $195.8 million by 5.74% [1] - The company's EPS for the same period was $0.42, a significant improvement from -$0.39 a year ago, although it fell short of the consensus estimate of $0.44 by 4.55% [1] Revenue Breakdown - Revenue from Malibu products reached $80.3 million, surpassing the average estimate of $56.75 million by two analysts, reflecting a year-over-year increase of 114.1% [4] - Cobalt products generated $53.8 million in revenue, which was below the average estimate of $62.1 million, but still represented a year-over-year increase of 7.2% [4] - Saltwater Fishing products reported revenue of $72.9 million, falling short of the average estimate of $83 million, with a year-over-year change of 2.7% [4] Stock Performance - Over the past month, shares of Malibu Boats have returned +16.4%, significantly outperforming the Zacks S&P 500 composite's +1.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - In Q4, net sales increased by 30.4% to $207 million, and unit volume increased by 16.8% to 1,221 boats [20] - For the full fiscal year 2025, net sales decreased by 2.6% to $807.6 million, and unit volume decreased by 9% to 4,898 boats [24] - Q4 adjusted EBITDA increased to $19.7 million, with an adjusted EBITDA margin of 9.5% [22] - GAAP net income for Q4 increased to $4.8 million, and adjusted net income per share increased by 205% to $0.42 [23] Business Line Data and Key Metrics Changes - The Malibu and Axis brands represented approximately 46.6% of unit sales, while Cobalt represented 26.9% and saltwater fishing represented 26.5% [20] - Adjusted EBITDA margin for the Malibu segment increased to 19.4% for fiscal year 2025 from 15.3% in fiscal year 2024 [26] - Adjusted EBITDA margin for the saltwater fishing segment decreased to 9.5% from 10.8%, and for the Cobalt segment decreased to 8.3% from 10.2% [27] Market Data and Key Metrics Changes - Initial market data suggests that fiscal Q4 was the weakest quarter of the year, with the broader market down mid-teens percentage points [10] - The company anticipates a modest direct impact from tariffs on fiscal year 2026 structure estimated between 1.5% to 3% cost of sales [17] Company Strategy and Development Direction - The company plans to introduce 11 new model year 26 boats while maintaining a commitment to quality and safety [8] - The focus remains on aligning wholesale with retail and supporting dealer health [10][12] - The company is committed to customer-centric innovation and environmental responsibility [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a challenging retail environment and macroeconomic uncertainty affecting consumer sentiment [6][10] - The company expects gradual improvement in fiscal year 2026, with net sales anticipated to be flat to down mid-single digits [29] - Management emphasizes a disciplined approach to expectations, aligning with real-time market conditions [18] Other Important Information - The company generated $29 million in free cash flow for the year and returned $36 million to shareholders through share repurchases [9][27] - The balance sheet remains strong with $19 million of net cash and over $300 million of untapped liquidity [27] Q&A Session Summary Question: Inventory levels and destocking expectations - Management indicated that elevated inventory levels are modest, around one to two weeks, and will be addressed in fiscal year 2026 guidance [33][34] Question: Impact of tariffs on pricing - Management is exploring multiple mitigation strategies for tariffs, including supply chain adjustments, and has incorporated expected cost increases into guidance [36] Question: Retail outlook and dealer health - Management expects the retail market to remain similar to the previous year, focusing on gaining market share in a declining market [47][49] Question: Pricing and cost offsets - Management confirmed that some mitigation efforts occurred in the previous fiscal year, and price increases will be necessary due to additional costs [61][63] Question: Long-term debt and capital strategy - Management clarified that the presence of long-term debt is due to the use of a credit facility for working capital, with a strong net cash position [67][68] Question: Sensitivity analysis for EBITDA margin recovery - Management noted that stabilizing the market would help eliminate the need for destocking, which could drive revenue and profit growth [70]

Financial Data and Key Metrics Changes - In Q4, net sales increased by 30.4% to $207 million, and unit volume increased by 16.8% to 1,221 boats [18] - Consolidated net sales per unit increased by 11.6% to $169,565, driven by inflation and a favorable model mix [19] - Gross profit increased by 162.1% to $32.7 million, with gross margin rising to 15.8% from 7.9% in the prior year [19] - For the full fiscal year 2025, net sales decreased by 2.6% to $807.6 million, and unit volume decreased by 9% to 4,898 boats [22] - Adjusted EBITDA decreased by 9.1% to $74.8 million, with adjusted EBITDA margin decreasing by 60 basis points to 9.3% [23] Business Line Data and Key Metrics Changes - The Malibu and Axis brands represented approximately 46.6% of unit sales, while Cobalt represented 26.9% and saltwater fishing represented 26.5% [19] - Adjusted EBITDA margin for the Malibu segment increased to 19.4% from 15.3% in the previous year, while the saltwater fishing segment decreased to 9.5% from 10.8% [24] Market Data and Key Metrics Changes - Initial market data indicated that fiscal Q4 was the weakest quarter of the year, with the broader market down mid-teens percentage points [9] - Elevated interest rates and macroeconomic uncertainty affected consumer sentiment, leading to softer industry retail data [9] Company Strategy and Development Direction - The company plans to introduce 11 new model year 26 boats while maintaining a commitment to quality and safety [7] - A focus on dealer health and inventory alignment is central to the company's strategy, with proactive steps taken to reduce dealer inventory [9][10] - The company aims to remain disciplined and aligned with market conditions while preparing for potential growth when the market normalizes [16][17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging retail environment and macroeconomic uncertainties but expressed confidence in the company's ability to navigate these challenges [6][15] - The company anticipates a modest direct impact from tariffs on cost of sales, estimated between 1.5% to 3% [15] - For fiscal year 2026, the company expects net sales to be flat to down mid-single digits, with gradual improvement projected towards the back half of the year [28][29] Other Important Information - The company generated $29 million in free cash flow and returned $36 million to shareholders through share repurchases [8][25] - The balance sheet remains strong, with $19 million of net cash and over $300 million of untapped liquidity on the credit facility [25][26] Q&A Session Summary Question: Inventory levels and destocking expectations - Management indicated that elevated inventory levels are modest, around one to two weeks, and will be addressed in fiscal 2026 guidance [32][33] Question: Impact of tariffs on pricing - Management is exploring multiple mitigation strategies for tariffs, including supply chain adjustments, but has incorporated increased costs into guidance [34][35] Question: Retail outlook and interest rate cuts - Guidance does not assume any interest rate cuts, and management expects normalized promotions to drive market share during the boat show season [39][40] Question: Health of the dealer base and industry inventory levels - The dealer network is generally healthy, but there is a slight excess inventory due to softer retail in Q4; the industry is improving overall [56][58] Question: Pricing and cost mitigation strategies - Management has taken steps to mitigate costs through advanced purchases and expects some price increases to be necessary [60][61] Question: Long-term debt and capital expenditure plans - There is no change in capital strategy; the company maintains a strong net cash position while being disciplined in capital expenditures [66][67]

分组1 - Malibu Boats reported quarterly earnings of $0.42 per share, missing the Zacks Consensus Estimate of $0.44 per share, compared to a loss of $0.39 per share a year ago, representing an earnings surprise of -4.55% [1] - The company posted revenues of $207.04 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 5.74%, and compared to year-ago revenues of $158.71 million [2] - Over the last four quarters, Malibu Boats has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] 分组2 - The current consensus EPS estimate for the coming quarter is $0.47 on revenues of $201.98 million, and for the current fiscal year, it is $2.59 on revenues of $867.08 million [7] - The Zacks Industry Rank indicates that the Leisure and Recreation Products sector is currently in the bottom 24% of over 250 Zacks industries, suggesting potential challenges for stocks in this category [8] 分组3 - Malibu Boats shares have added about 5.1% since the beginning of the year, underperforming compared to the S&P 500's gain of 10.2% [3] - The estimate revisions trend for Malibu Boats was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

PART I [Item 1. Business](index=7&type=section&id=Item%201.%20Business) Malibu Boats is a leading global designer, manufacturer, and marketer of recreational powerboats across eight premium brands - Malibu Boats is a market leader in performance sport boats (Malibu, Axis), fiberglass outboard fishing boats (Pursuit, Maverick Boat Group), and **24'-29'** sterndrive segment (Cobalt)[23](index=23&type=chunk) - The company's product portfolio includes eight brands: Malibu, Axis, Pursuit, Maverick, Cobia, Pathfinder, Hewes, and Cobalt, catering to diverse recreational boating activities including water sports and fishing[23](index=23&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk) - Key innovations like Surf Gate and Surf Band have expanded the market for water sports products[25](index=25&type=chunk)[33](index=33&type=chunk) - As of June 30, 2025, the company's distribution channel comprised over **325 global dealer locations**, with the top ten dealers representing **42.8% of net sales** for fiscal year **2025**[28](index=28&type=chunk)[37](index=37&type=chunk) - Vertical integration of key components such as engines (Malibu Monsoon), boat trailers, towers, wiring harnesses, and tooling aims to reduce reliance on third-party suppliers, increase incremental margin, and enhance control over design and quality[56](index=56&type=chunk)[57](index=57&type=chunk)[278](index=278&type=chunk)[279](index=279&type=chunk) [Our Company](index=7&type=section&id=Our%20Company) This section provides an overview of Malibu Boats, Inc. as a leading designer, manufacturer, and marketer of recreational powerboats [Competitive Market](index=8&type=section&id=Competitive%20Market) This section analyzes the competitive landscape and market position of Malibu Boats within the recreational powerboat industry Recreational Powerboat Market Data (Calendar Year 2024) | Recreational Powerboat Category | Unit Sales | Retail Sales (Dollars in millions) | | :------------------------------ | :--------- | :------------------------------- | | Outboard | 141,590 | $10,090 | | Performance sport boat | 8,867 | $849 | | Sterndrive | 5,858 | $1,659 | | Jet boat | 9,742 | $648 | | Cruisers | 1,356 | $2,302 | | Total addressable market | 167,413 | $15,548 | [Our Products and Brands](index=8&type=section&id=Our%20Products%20and%20Brands) This section details the company's diverse product portfolio across its eight premium brands, including models, lengths, and price ranges Product Offerings by Brand (as of June 30, 2025) | Reportable Segment | Brand | Number of Models | Lengths | Retail Price Range (In thousands) | | :----------------- | :---------------- | :--------------- | :-------- | :-------------------------------- | | Malibu | Malibu | 12 | 20'-26' | $80-$300 | | | Axis | 6 | 20'-25' | $80-$175 | | Saltwater Fishing | Pursuit | 16 | 25'-46' | $130-$1,400 | | | Cobia | 14 | 21'-34' | $60-$500 | | | Pathfinder | 8 | 22'-27' | $60-$250 | | | Maverick and Hewes | 6 | 16'-21' | $45-$125 | | Cobalt | Cobalt | 16 | 22'-35' | $75-$625 | [Innovative Features](index=9&type=section&id=Innovative%20Features) This section highlights Malibu Boats' proprietary technologies and product innovations that enhance the recreational boating experience - Proprietary technologies like Surf Gate and Surf Band allow remote control of surf waves, enhancing the wake surfing experience[33](index=33&type=chunk) - Other notable innovations include Malibu Monsoon Engine, Power Wedge III, G5 and G10+ Tower, Electronic Dashboard Controls, Flip Down Swim Step, Tower Mister, Splash and Stow, Cobalt's TruWave Technology, Pursuit's Electric Sliding Entertainment Center, and Maverick Boat Group's 'Hybrid' and 'Open' Bay Boat designs[33](index=33&type=chunk) - Malibu Wakesetter 23 LSV won Wakeworld 'Readers Choice' Wakeboard and Wakesurf Boat of the Year five years running (2020-2024)[33](index=33&type=chunk) [Our Dealer Network](index=10&type=section&id=Our%20Dealer%20Network) This section describes the company's global dealer network, its structure, and the significant contribution of top dealers to net sales - As of June 30, 2025, the company's global dealer network consisted of over **325 locations**[28](index=28&type=chunk)[37](index=37&type=chunk)[39](index=39&type=chunk) Top Ten Dealers' Contribution to Net Sales | Fiscal Year | Consolidated Net Sales (%) | | :---------- | :------------------------- | | 2025 | 42.8% | | 2024 | 40.4% | | 2023 | 41.1% | OneWater Marine, Inc. Sales as % of Consolidated Net Sales | Fiscal Year | Consolidated Net Sales (%) | | :---------- | :------------------------- | | 2025 | 24.7% | | 2024 | 23.7% | | 2023 | 17.2% | - The company repurchased **22 units** under repurchase agreements in fiscal year **2025**, including **19 units** related to Tommy's Boats bankruptcy, with **20 units** subsequently resold above cost[45](index=45&type=chunk) [Marketing and Sales](index=11&type=section&id=Marketing%20and%20Sales) This section outlines the company's strategies and activities related to marketing and sales of its recreational powerboats [Product Development and Engineering](index=11&type=section&id=Product%20Development%20and%20Engineering) This section details the company's approach to product innovation, including team structure and strategic initiatives for new model introduction and feature integration - As of June 30, 2025, the product development and engineering team consisted of approximately **123 professionals**[51](index=51&type=chunk) - The strategy involves introducing new boat models for underserved segments and integrating innovative features, managed through a formalized phase gate process[52](index=52&type=chunk)[53](index=53&type=chunk) [Manufacturing](index=13&type=section&id=Manufacturing) This section describes Malibu Boats' manufacturing operations, including facility locations, vertical integration strategies, and their objectives for efficiency and quality control - The company operates **eight manufacturing facilities** across **four U.S. states** (Tennessee, Kansas, Florida, California) and Australia[54](index=54&type=chunk) - Key components like Malibu Monsoon engines, boat trailers, towers, machined/billet parts, soft grip flooring, and wiring harnesses are vertically integrated[56](index=56&type=chunk) - Vertical integration aims to increase incremental margin, improve manufacturing efficiency, and enhance control over design, customization, quality, and the supply chain[56](index=56&type=chunk) [Suppliers](index=14&type=section&id=Suppliers) This section discusses the company's key supplier relationships for critical components, particularly engines, and recent supply chain conditions - The most significant component by cost is engines, with supply agreements with General Motors (through model year 2026) for Malibu/Axis/Cobalt sterndrive blocks, and Yamaha (expires June 30, 2027) for Pursuit/Cobalt/Maverick Boat Group outboards, and Volvo for Cobalt sterndrive assemblies[57](index=57&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk) - Systemic supply chain disruptions experienced from fiscal year **2020** through the first half of fiscal **2023** were largely rectified during fiscal year **2025**[60](index=60&type=chunk) [Insurance and Product Warranties](index=14&type=section&id=Insurance%20and%20Product%20Warranties) This section outlines the company's product warranty policies across its various brands, detailing coverage periods for structural and bow-to-stern components - Malibu and Axis brand boats have a limited warranty of up to **five years**[62](index=62&type=chunk) - Cobalt brand boats offer a structural warranty of up to **ten years** and a **five-year** bow-to-stern warranty[62](index=62&type=chunk) - Pursuit brand boats have a **five-year** structural warranty and a **two-year** bow-to-stern warranty[62](index=62&type=chunk) - Maverick, Pathfinder, and Hewes brand boats have a **five-year** structural warranty and a **one-year** bow-to-stern warranty[62](index=62&type=chunk) - Cobia brand boats have a **ten-year** structural warranty and a **three-year** bow-to-stern warranty[62](index=62&type=chunk) [Strategic Acquisitions](index=14&type=section&id=Strategic%20Acquisitions) This section describes Malibu Boats' growth strategy through targeted acquisitions, highlighting past transactions and their objectives for market expansion and synergy realization - The company's growth strategy includes targeted acquisitions, such as Maverick Boat Group (2020), Pursuit (2018), and Cobalt (2017)[63](index=63&type=chunk) - Acquisition objectives include expanding market presence, entering new product categories, and realizing synergies through cost savings and revenue growth[63](index=63&type=chunk)[64](index=64&type=chunk) [Intellectual Property](index=15&type=section&id=Intellectual%20Property) This section outlines how Malibu Boats protects its intellectual property through patents and trademarks for its innovative technologies and brand names - The company protects its intellectual property through patents (e.g., Surf Gate, Swim Step, Power Wedge) and trademarks (e.g., Malibu, Axis, Monsoon, Pursuit, Cobia, Maverick, Cobalt)[65](index=65&type=chunk)[66](index=66&type=chunk) [Seasonality](index=15&type=section&id=Seasonality) This section addresses the seasonal nature of retail demand for boats and the company's strategies to mitigate its impact on manufacturing and sales - Retail demand for boats is seasonal, with most sales occurring during the first and fourth fiscal quarters (spring and summer)[67](index=67&type=chunk) - The company mitigates seasonality through manufacturing management and dealer incentives, such as volume rebates and free flooring for off-season orders[67](index=67&type=chunk) [Safety and Regulatory Matters](index=15&type=section&id=Safety%20and%20Regulatory%20Matters) This section details the extensive environmental, health, safety, and product design regulations that Malibu Boats' operations and products must comply with in the U.S. and Australia - Operations are subject to extensive environmental, health, and safety regulations in the U.S. and Australia, including hazardous materials, air quality (Clean Air Act, CARB), and workplace safety (OSHA, SafeWork NSW)[68](index=68&type=chunk)[69](index=69&type=chunk)[71](index=71&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk) - Boats must comply with U.S. Coast Guard regulations and EU Directive 2013/53/EU for design and construction standards[75](index=75&type=chunk) [Human Capital Management](index=16&type=section&id=Human%20Capital%20Management) This section describes Malibu Boats' human capital strategies, including employee numbers, talent retention, development programs, and commitment to workplace safety - As of June 30, 2025, the company had approximately **2,200 employees** worldwide, none covered by collective bargaining agreements[76](index=76&type=chunk) - The company focuses on talent retention and development through competitive pay, benefits, annual performance evaluations, supervisor training, and internal promotions (**88%** of production leaders are internal promotions)[77](index=77&type=chunk)[78](index=78&type=chunk) - Safety is a core value, with a commitment to an injury-free workplace through training and safety initiatives[79](index=79&type=chunk) [Organizational Structure](index=17&type=section&id=Organizational%20Structure) This section outlines Malibu Boats' corporate structure, including its holding company status, ownership interests in its LLC, and the nature of its common stock classes - Malibu Boats, Inc. is a holding company that owns an interest in Malibu Boats Holdings, LLC (LLC) As of June 30, 2025, MBI held approximately **98.6%** of the economic interest in the LLC[84](index=84&type=chunk)[86](index=86&type=chunk)[537](index=537&type=chunk) - The company has Class A Common Stock (economic and voting rights) and Class B Common Stock (voting rights tied to LLC Units, no economic rights)[85](index=85&type=chunk)[529](index=529&type=chunk)[531](index=531&type=chunk) - A tax receivable agreement with pre-IPO owners mandates payments of **85%** of realized tax benefits from increases in tax basis due to LLC Unit exchanges or purchases[94](index=94&type=chunk)[200](index=200&type=chunk)[502](index=502&type=chunk) [Item 1A. Risk Factors](index=22&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant operational, market, dealer, litigation, regulatory, and capital structure risks - The company's large fixed-cost base can negatively impact profitability during sales declines[18](index=18&type=chunk)[97](index=97&type=chunk) - Inability to accurately forecast demand can lead to inventory management issues, affecting business and results[18](index=18&type=chunk)[100](index=100&type=chunk) - Reliance on a small group of suppliers for critical components (e.g., engines) poses risks of supply disruptions and increased costs[18](index=18&type=chunk)[104](index=104&type=chunk) - Weak general economic conditions, high inflation, and heightened interest rates negatively impact consumer demand for discretionary products like boats[18](index=18&type=chunk)[154](index=154&type=chunk)[165](index=165&type=chunk) - The company is exposed to significant litigation risks, including product liability claims and securities class action lawsuits, which can result in substantial costs and reputational harm[19](index=19&type=chunk)[172](index=172&type=chunk)[177](index=177&type=chunk)[179](index=179&type=chunk) - Obligations under the tax receivable agreement could be substantial, with estimated future payments of approximately **$40.4 million** over the next **sixteen years**, potentially impacting liquidity[21](index=21&type=chunk)[201](index=201&type=chunk) [Risks Related to our Business and Operations](index=22&type=section&id=Risks%20Related%20to%20our%20Business%20and%20Operations) This section details risks associated with the company's business and operational aspects, including fixed costs, demand forecasting, and supply chain dependencies [Risks Related to our Markets and the Recreational Powerboat Industry](index=31&type=section&id=Risks%20Related%20to%20our%20Markets%20and%20the%20Recreational%20Powerboat%20Industry) This section outlines risks stemming from market conditions and the recreational powerboat industry, such as economic downturns and competitive pressures [Risks Related to our Dealers](index=33&type=section&id=Risks%20Related%20to%20our%20Dealers) This section addresses risks associated with the company's reliance on its independent dealer network, including their financial health and performance [Risks Related to Litigation and our Regulatory, Accounting and Tax Environment](index=34&type=section&id=Risks%20Related%20to%20Litigation%20and%20our%20Regulatory%2C%20Accounting%20and%20Tax%20Environment) This section covers risks arising from potential litigation, compliance with various regulations, and complexities in accounting and tax environments [Risks Related to our Capital Structure](index=37&type=section&id=Risks%20Related%20to%20our%20Capital%20Structure) This section discusses risks pertinent to the company's capital structure, including debt obligations, tax receivable agreements, and potential impacts on liquidity [Risks Related to our Common Stock](index=40&type=section&id=Risks%20Related%20to%20our%20Common%20Stock) This section outlines risks specifically related to the company's common stock, such as market price volatility and shareholder rights [Item 1B. Unresolved Staff Comments](index=42&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) There are no unresolved staff comments from the SEC [Item 1C. Cybersecurity](index=42&type=section&id=Item%201C.%20Cybersecurity) The company has implemented various information security processes to identify, assess, and manage cybersecurity risks to its Information Systems and Data - The company employs information security processes for identifying, assessing, and managing cybersecurity threats to its critical networks and data[217](index=217&type=chunk) - Cybersecurity risk management is overseen by the CIO (a CISSP with over **20 years of experience**) and the Cybersecurity Steering Committee, and is integrated into the company's enterprise risk assessment[218](index=218&type=chunk)[220](index=220&type=chunk)[225](index=225&type=chunk) - The board of directors' audit committee is responsible for overseeing the company's cybersecurity risk management processes[224](index=224&type=chunk) [Risk management and strategy](index=42&type=section&id=Risk%20management%20and%20strategy) This section details the company's processes for identifying, assessing, and managing cybersecurity risks to its information systems and data [Governance](index=42&type=section&id=Governance) This section describes the oversight structure for cybersecurity risk management, including the roles of the CIO, Cybersecurity Steering Committee, and the board's audit committee [Item 2. Properties](index=43&type=section&id=Item%202.%20Properties) Malibu Boats operates eight manufacturing facilities across four U.S. states (Tennessee, Kansas, Florida, California) and Australia - Malibu and Axis boats are manufactured in Loudon, Tennessee (leased **197,000 sq ft**) and Australia (leased **68,200 sq ft**)[230](index=230&type=chunk)[237](index=237&type=chunk) - Cobalt boats are manufactured in Neodesha, Kansas (owned **493,000 sq ft**) and Lenoir City, Tennessee (owned **260,000 sq ft**)[232](index=232&type=chunk)[233](index=233&type=chunk) - Pursuit and Maverick Boat Group boats are manufactured in Fort Pierce, Florida (owned **398,000 sq ft** for Pursuit, **330,000 sq ft** for Maverick Boat Group) A new **116,000 sq ft** Tooling Design Center was launched in Fort Pierce in March **2023**[234](index=234&type=chunk)[235](index=235&type=chunk) - A facility in Merced, California (leased **172,500 sq ft**) houses product development and tower/accessory manufacturing[236](index=236&type=chunk) [Item 3. Legal Proceedings](index=44&type=section&id=Item%203.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 17 of the audited consolidated financial statements [Item 4. Mine Safety Disclosures](index=44&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=45&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Malibu Boats' Class A Common Stock is listed on the Nasdaq Global Select Market under the symbol 'MBUU' - Class A Common Stock is listed on the Nasdaq Global Select Market under 'MBUU'[3](index=3&type=chunk) - As of August 25, 2025, there were approximately **five holders** of record for Class A Common Stock and **12** for Class B Common Stock[241](index=241&type=chunk) - The company has never declared or paid cash dividends on its capital stock[242](index=242&type=chunk) Stock Repurchase Activity (Fiscal Year Ended June 30, 2025) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | | :----------------------------------- | :------------------------------- | :--------------------------- | | April 1, 2025 through April 30, 2025 | 151,735 | $27.68 | | May 1, 2025 through May 31, 2025 | 47,250 | $29.63 | | June 1, 2025 through June 30, 2025 | — | — | | Total | 198,985 | $28.22 | - For the fiscal year ended June 30, 2025, the company repurchased **997,791 shares** of Class A Common Stock for **$36.0 million** in cash[247](index=247&type=chunk) - A new **$50.0 million** stock repurchase program (2025 Repurchase Program) was authorized for July 1, 2025, to June 30, 2026[248](index=248&type=chunk) [Market Information](index=45&type=section&id=Market%20Information) This section provides details on the market where the registrant's common equity is traded [Dividends](index=45&type=section&id=Dividends) This section outlines the company's dividend policy and history regarding cash dividends on its capital stock [Stock Performance Graph](index=45&type=section&id=Stock%20Performance%20Graph) This section presents a graph comparing the cumulative total return of the company's common stock with a peer group and a broad market index [Issuer Purchases of Equity Securities](index=46&type=section&id=Issuer%20Purchases%20of%20Equity%20Securities) This section details the company's stock repurchase activities, including the number of shares purchased and the average price paid per share [Unregistered Sales of Equity Securities](index=46&type=section&id=Unregistered%20Sales%20of%20Equity%20Securities) This section provides information on any sales of equity securities that were not registered under the Securities Act of 1933 [Equity Compensation Plan Information](index=46&type=section&id=Equity%20Compensation%20Plan%20Information) This section presents information regarding the company's equity compensation plans, including shares available for future issuance [Item 6. [RESERVED]](index=47&type=section&id=Item%206.%20%5BRESERVED%5D) This item is reserved and contains no information [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=48&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Analysis of financial performance, net sales, profitability, and cash flows, highlighting macroeconomic impacts and strategic responses Consolidated Financial Highlights (Fiscal Years Ended June 30, in thousands) | Metric | FY2025 | FY2024 | FY2023 | | :----------------- | :---------- | :----------- | :------------ | | Net Sales | $807,561 | $829,035 | $1,388,365 | | Net Income (Loss) | $15,240 | $(56,443) | $107,910 | | Adjusted EBITDA | $74,770 | $82,237 | $284,036 | | Net Income (Loss) Margin | 1.9% | (6.8)% | 7.8% | | Adjusted EBITDA Margin | 9.3% | 9.9% | 20.5% | - Net sales decreased by **2.6%** to **$807.6 million** in FY2025, driven by decreased unit volumes in Saltwater Fishing and Cobalt segments, partially offset by Malibu segment growth and price increases[289](index=289&type=chunk) - Unit volume decreased by **9.0%** to **4,898 units** in FY2025, primarily due to lower wholesale shipments driven by reduced retail activity and dealers' desire for less inventory[288](index=288&type=chunk)[289](index=289&type=chunk) - The company expects continued reduced retail consumer demand and dealer inventory pressure in the near term due to macroeconomic uncertainty, inflation, and high interest rates[262](index=262&type=chunk)[265](index=265&type=chunk) - Anticipates additional material costs of approximately **1.5% to 3%** of Cost of Sales in fiscal year **2026** due to new tariff exposure, largely to be offset by price increases[264](index=264&type=chunk) [Overview](index=48&type=section&id=Overview) This section provides a high-level summary of the company's financial performance and key business trends for the reported periods Segment Revenue Contribution (% of Total Revenues) | Segment | FY2025 | FY2024 | FY2023 | | :---------------- | :----- | :----- | :----- | | Malibu | 38.7% | 33.7% | 45.8% | | Saltwater Fishing | 34.6% | 39.5% | 32.4% | | Cobalt | 26.7% | 26.8% | 21.8% | [Outlook](index=49&type=section&id=Outlook) This section discusses the company's expectations for future financial performance and market conditions [Factors Affecting Our Results of Operations](index=49&type=section&id=Factors%20Affecting%20Our%20Results%20of%20Operations) This section identifies and explains the various internal and external factors that influence the company's financial results [Components of Results of Operations](index=51&type=section&id=Components%20of%20Results%20of%20Operations) This section breaks down the key line items within the consolidated statements of operations and their significance [Results of Operations](index=52&type=section&id=Results%20of%20Operations) This section provides a detailed analysis of the company's financial performance, including net sales, gross profit, operating income, and net income for the reported fiscal years Consolidated Results of Operations (Fiscal Year Ended June 30, in thousands) | Metric | FY2025 | % Revenue | FY2024 | % Revenue | FY2023 | % Revenue | | :----------------------------------------- | :-------- | :-------- | :-------- | :-------- | :---------- | :-------- | | Net sales | $807,561 | 100.0% | $829,035 | 100.0% | $1,388,365 | 100.0% | | Cost of sales | $663,470 | 82.2% | $681,940 | 82.3% | $1,037,070 | 74.7% | | Gross profit | $144,091 | 17.8% | $147,095 | 17.7% | $351,295 | 25.3% | | Operating income (loss) | $21,761 | 2.7% | $(55,947) | (6.7)% | $144,784 | 10.4% | | Income (loss) before provision for income taxes | $20,263 | 2.5% | $(57,785) | (7.0)% | $141,491 | 10.2% | | Net income (loss) | $15,240 | 1.9% | $(56,443) | (6.8)% | $107,910 | 7.8% | Unit Volumes by Segment (Fiscal Year Ended June 30) | Segment | FY2025 Unit Volumes | % Total | FY2024 Unit Volumes | % Total | FY2023 Unit Volumes | % Total | | :---------------- | :------------------ | :------ | :------------------ | :------ | :------------------ | :------ | | Malibu | 2,223 | 45.3% | 2,181 | 40.5% | 5,127 | 52.0% | | Saltwater Fishing | 1,266 | 25.9% | 1,633 | 30.3% | 2,585 | 26.2% | | Cobalt | 1,409 | 28.8% | 1,571 | 29.2% | 2,151 | 21.8% | | Total Units | 4,898 | | 5,385 | | 9,863 | | Net Sales Per Unit (Fiscal Year Ended June 30) | Metric | FY2025 | FY2024 | FY2023 | | :---------------- | :---------- | :---------- | :---------- | | Consolidated | $164,876 | $153,953 | $140,765 | | Malibu Segment | $140,665 | $127,983 | | | Saltwater Fishing | $220,881 | $200,577 | | | Cobalt Segment | $152,752 | $141,542 | | - Gross margin increased slightly from **17.7%** in FY2024 to **17.8%** in FY2025, but decreased significantly from **25.3%** in FY2023[295](index=295&type=chunk)[308](index=308&type=chunk) - Operating expenses decreased by **$80.7 million (39.8%)** in FY2025, primarily due to an **$88.4 million** impairment charge related to Maverick Boat Group in FY2024 that did not recur[296](index=296&type=chunk) - General and administrative expenses increased by **$16.1 million (21.1%)** in FY2025, driven by a **$3.5 million** legal settlement, other legal fees, stock-based compensation, incentive pay, and salaries[297](index=297&type=chunk) [GAAP Reconciliation of Non-GAAP Financial Measures](index=59&type=section&id=GAAP%20Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides reconciliations of non-GAAP financial measures, such as Adjusted EBITDA and Adjusted Net Income Per Share, to their most directly comparable GAAP measures Adjusted EBITDA Reconciliation (Fiscal Year Ended June 30, in thousands) | Metric | FY2025 | FY2024 | FY2023 | | :----------------------------------------- | :-------- | :-------- | :-------- | | Net income (loss) | $15,240 | $(56,443) | $107,910 | | Provision (benefit) for income taxes | $5,023 | $(1,342) | $33,581 | | Interest expense | $1,883 | $1,842 | $2,962 | | Depreciation | $31,794 | $26,178 | $21,912 | | Amortization | $6,799 | $6,811 | $6,808 | | Goodwill and other intangible asset impairment | — | $88,389 | — | | Abandonment of construction in process | — | $8,735 | — | | Litigation settlement | $3,500 | — | $100,000 | | Non-recurring professional fees | $4,962 | $3,096 | $4,781 | | Stock-based compensation expense | $5,916 | $4,935 | $5,894 | | Adjustment to tax receivable agreement liability | $(347) | $36 | $188 | | **Adjusted EBITDA** | **$74,770** | **$82,237** | **$284,036** | Adjusted Net Income Per Share Reconciliation (Fiscal Year Ended June 30, in thousands, except per share data) | Metric | FY2025 | FY2024 | FY2023 | | :----------------------------------------- | :---------- | :---------- | :---------- | | Net income (loss) attributable to Malibu Boats, Inc. | $14,879 | $(55,912) | $104,513 | | Goodwill and other intangible asset impairment | — | $88,389 | — | | Litigation settlement | $3,500 | — | $100,000 | | Non-recurring professional fees | $4,962 | $3,096 | $4,781 | | Stock-based compensation expense | $5,916 | $4,935 | $5,894 | | Abandonment of construction in process | — | $8,735 | — | | Acquisition related amortization | $6,653 | $6,672 | $6,654 | | Provision (benefit) for taxes | $5,023 | $(1,342) | $33,581 | | Adjusted income before taxes | $40,933 | $54,573 | $255,423 | | Income tax expense on adjusted income before income taxes | $10,029 | $13,370 | $62,068 | | **Adjusted net income** | **$30,904** | **$41,203** | **$193,355** | | Basic weighted-average shares outstanding | 19,664,337 | 20,439,449 | 20,501,844 | | **Adjusted net income per share** | **$1.58** | **$2.01** | **$9.43** | [Liquidity and Capital Resources](index=62&type=section&id=Liquidity%20and%20Capital%20Resources) This section analyzes the company's sources and uses of cash, its debt facilities, and overall liquidity position - Primary cash uses include working capital, capital investments, debt repayments, acquisitions, LLC distributions, tax receivable agreement payments, and stock repurchases[323](index=323&type=chunk)[324](index=324&type=chunk) - Sources of cash are primarily operating cash flows, borrowings under the revolving credit facility, and debt financings[323](index=323&type=chunk) Cash Flows Summary (Fiscal Year Ended June 30, in thousands) | Activity | FY2025 | FY2024 | FY2023 | | :----------------------- | :-------- | :--------- | :---------- | | Operating activities | $56,506 | $55,558 | $184,733 | | Investing activities | $(27,374) | $(75,842) | $(54,638) | | Financing activities | $(18,820) | $(31,695) | $(134,574) | | Increase (decrease) in cash | $10,057 | $(51,992) | $(4,807) | - As of June 30, 2025, the company had **$18.0 million** outstanding borrowings under its **$350.0 million** revolving credit facility, with **$330.3 million** available[327](index=327&type=chunk)[339](index=339&type=chunk)[340](index=340&type=chunk) - The company made a **$3.5 million** settlement payment to Tommy's Boats estate on July 21, 2025, and anticipates the **$7.8 million** securities class action settlement will be fully covered by insurance[175](index=175&type=chunk)[177](index=177&type=chunk) [Critical Accounting Policies and Critical Accounting Estimates](index=65&type=section&id=Critical%20Accounting%20Policies%20and%20Critical%20Accounting%20Estimates) This section discusses the accounting policies and estimates that require significant judgment and can materially impact the company's financial statements - Key accounting policies involve significant judgment and estimates, including revenue recognition, product warranties, goodwill, intangible assets, and other long-lived assets[346](index=346&type=chunk)[348](index=348&type=chunk) - A hypothetical **10% change** in the estimated warranty liability as of June 30, 2025, would affect net income by approximately **$4.1 million**[353](index=353&type=chunk) - In FY2024, the company recognized an **$88.4 million** impairment charge (**$49.2 million** goodwill, **$39.2 million** trade names) related to the Maverick Boat Group reporting unit due to a decline in forecasts and macroeconomic conditions[113](index=113&type=chunk)[183](index=183&type=chunk)[296](index=296&type=chunk)[357](index=357&type=chunk)[361](index=361&type=chunk) - An **$8.7 million** non-cash charge was recorded in FY2024 for the abandonment of a company-wide ERP project[296](index=296&type=chunk)[363](index=363&type=chunk) [New Accounting Pronouncements](index=68&type=section&id=New%20Accounting%20Pronouncements) This section outlines recently adopted and upcoming accounting pronouncements and their anticipated impact on the company's financial reporting - Adopted ASU 2023-07 (Segment Reporting) in Q4 FY2025, resulting in additional disclosures but no impact on financial condition, results of operations, or cash flows[459](index=459&type=chunk) - Assessing ASU 2023-09 (Income Tax Disclosures), effective FY2025, which will expand disclosures but not impact financial results[460](index=460&type=chunk) - Evaluating ASU 2024-03 (Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures), effective FY2027, for its potential effects[461](index=461&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=69&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is primarily exposed to foreign exchange rate risk due to Australian operations and interest rate risk from variable-rate borrowings under its revolving credit facility - The company is exposed to foreign exchange rate risk due to operations in Australia, with immaterial foreign currency translation impacts in recent fiscal years[366](index=366&type=chunk) - Interest rate risk arises from variable-rate borrowings under the revolving credit facility; a **100 basis point** increase in interest rates would increase annual interest expense by approximately **$0.2 million** based on June 30, 2025, outstanding debt[198](index=198&type=chunk)[368](index=368&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=70&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) Presents audited consolidated financial statements, including operations, balance sheets, equity, cash flows, and management/auditor reports [Report of Management on Internal Control Over Financial Reporting](index=71&type=section&id=Report%20of%20Management%20on%20Internal%20Control%20Over%20Financial%20Reporting) This section presents management's assessment of the effectiveness of the company's internal control over financial reporting - Management concluded that the company's internal control over financial reporting was effective as of June 30, 2025, based on the COSO framework[375](index=375&type=chunk)[376](index=376&type=chunk) [Reports of Independent Registered Public Accounting Firm](index=72&type=section&id=Reports%20of%20Independent%20Registered%20Public%20Accounting%20Firm) This section includes the independent auditor's reports on the company's consolidated financial statements and internal control over financial reporting - KPMG LLP issued an unqualified opinion on the effectiveness of the company's internal control over financial reporting as of June 30, 2025[378](index=378&type=chunk) - KPMG LLP also issued an unqualified opinion on the consolidated financial statements for the three-year period ended June 30, 2025[379](index=379&type=chunk)[385](index=385&type=chunk) - A critical audit matter identified was the evaluation of certain assumptions underlying the product warranty liability for Malibu and Axis branded boats, requiring subjective auditor judgment[390](index=390&type=chunk)[391](index=391&type=chunk) [Consolidated Statements of Operations and Comprehensive Income (Loss)](index=76&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) This section presents the company's consolidated statements of operations and comprehensive income (loss) for the reported fiscal years [Consolidated Balance Sheets](index=77&type=section&id=Consolidated%20Balance%20Sheets) This section provides the company's consolidated balance sheets, detailing assets, liabilities, and equity at the end of the reported fiscal years [Consolidated Statements of Stockholders' Equity](index=78&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity) This section presents the changes in the company's consolidated stockholders' equity for the reported fiscal years [Consolidated Statements of Cash Flows](index=81&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section provides the company's consolidated statements of cash flows, categorizing cash activities into operating, investing, and financing [Notes to Consolidated Financial Statements](index=83&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This note details the company's organization, significant accounting policies, and specific financial statement line items [Note 1. Organization, Basis of Presentation, and Summary of Significant Accounting Policies](index=83&type=section&id=Note%201.%20Organization%2C%20Basis%20of%20Presentation%2C%20and%20Summary%20of%20Significant%20Accounting%20Policies) This note provides an overview of the company's organizational structure, the basis of financial statement presentation, and a summary of its key accounting policies - Malibu Boats, Inc. is a holding company that consolidates the financial results of Malibu Boats Holdings, LLC (LLC), in which it held a **98.6% economic interest** as of June 30, 2025[409](index=409&type=chunk)[467](index=467&type=chunk) - The company's top ten dealers represented **42.8% of net sales** in FY2025, indicating a concentration of business risk[416](index=416&type=chunk) - Goodwill and indefinite-lived intangible assets are tested for impairment annually (June 30) or more frequently if indicators arise A **$49.2 million** goodwill impairment charge was recognized in FY2024 for the Maverick Boat Group reporting unit[419](index=419&type=chunk)[421](index=421&type=chunk) - Definite-lived intangible assets (dealer relationships, patents, trade names, non-compete agreements) are amortized over **10-20 years** A **$39.2 million** impairment charge on trade names was recorded in FY2024 for Maverick Boat Group[422](index=422&type=chunk)[425](index=425&type=chunk) [Note 2. Revenue Recognition](index=91&type=section&id=Note%202.%20Revenue%20Recognition) This note describes the company's policies and procedures for recognizing revenue from its various product offerings and services Revenue by Product and Geography (Fiscal Year Ended June 30, 2025, in thousands) | Segment | Boat and Trailer Sales | Part and Other Sales | Net Sales | North America | International | | :---------------- | :--------------------- | :------------------- | :--------- | :------------ | :------------ | | Malibu | $296,980 | $15,718 | $312,698 | $285,820 | $26,878 | | Saltwater Fishing | $277,218 | $2,417 | $279,635 | $265,250 | $14,385 | | Cobalt | $212,128 | $3,100 | $215,228 | $207,588 | $7,640 | | Consolidated | $786,326 | $21,235 | $807,561 | $758,658 | $48,903 | - Revenue is recognized when control of goods (boats, parts) is transferred to the customer upon shipment, net of marketing incentives and rebates[349](index=349&type=chunk)[447](index=447&type=chunk)[448](index=448&type=chunk) - Royalty income from proprietary wake surfing technology is recognized when used or sold by other manufacturers[352](index=352&type=chunk)[451](index=451&type=chunk) [Note 3. Non-controlling Interest](index=92&type=section&id=Note%203.%20Non-controlling%20Interest) This note explains the nature and accounting treatment of non-controlling interests in the company's consolidated financial statements LLC Ownership (As of June 30) | Ownership Type | FY2025 Units | FY2025 Ownership % | FY2024 Units | FY2024 Ownership % | | :---------------------------------- | :----------- | :----------------- | :----------- | :----------------- | | Non-controlling LLC unit holders | 276,419 | 1.4% | 321,419 | 1.6% | | Malibu Boats, Inc. | 19,225,848 | 98.6% | 20,181,542 | 98.4% | | Total | 19,502,267 | 100.0% | 20,502,961 | 100.0% | - Non-controlling interest represents the portion of net income/loss and net assets attributable to LLC Unit holders other than Malibu Boats, Inc[285](index=285&type=chunk)[301](index=301&type=chunk)[312](index=312&type=chunk)[467](index=467&type=chunk) - Tax distributions to non-controlling LLC Unit holders were **$0** in FY2025 and **$890 thousand** in FY2024, down from **$3,401 thousand** in FY2023[469](index=469&type=chunk) [Note 4. Inventories, net](index=94&type=section&id=Note%204.%20Inventories%2C%20net) This note provides a breakdown of the company's inventory balances, including raw materials, work in progress, and finished goods Inventories, net (As of June 30, in thousands) | Category | FY2025 | FY2024 | | :------------------ | :-------- | :-------- | | Raw materials | $97,089 | $107,245 | | Work in progress | $24,890 | $20,683 | | Finished goods | $20,184 | $16,392 | | Inventory subject to return | — | $1,253 | | Total inventories | $142,163 | $145,573 | [Note 5. Prepaid Expenses and Other Current Assets](index=95&type=section&id=Note%205.%20Prepaid%20Expenses%20and%20Other%20Current%20Assets) This note details the components of prepaid expenses and other current assets, including insurance receivables and other miscellaneous receivables Prepaid Expenses and Other Current Assets (As of June 30, in thousands) | Category | FY2025 | FY2024 | | :---------------------------- | :-------- | :-------- | | Prepaid expenses | $4,257 | $5,808 | | Insurance receivables | $8,375 | — | | Other receivables | $2,002 | $662 | | Total | $14,634 | $6,470 | - Insurance receivables include approximately **$7.8 million** related to a claim filed with an insurance carrier, with recovery believed to be probable[474](index=474&type=chunk) [Note 6. Property, Plant, and Equipment, net](index=95&type=section&id=Note%206.%20Property%2C%20Plant%2C%20and%20Equipment%2C%20net) This note provides a detailed breakdown of the company's property, plant, and equipment, including land, buildings, machinery, and construction in process Property, Plant, and Equipment, net (As of June 30, in thousands) | Category | FY2025 | FY2024 | | :---------------------------- | :---------- | :---------- | | Land | $4,716 | $4,890 | | Building and leasehold improvements | $171,685 | $170,958 | | Machinery and equipment | $143,526 | $118,123 | | Furniture and fixtures | $16,609 | $15,466 | | Construction in process | $35,189 | $43,511 | | Less accumulated depreciation | $(135,848) | $(108,347) | | Total | $235,877 | $244,601 | - Depreciation expense was **$31.8 million** in FY2025, **$26.2 million** in FY2024, and **$21.9 million** in FY2023, primarily recorded in cost of sales[478](index=478&type=chunk) - In FY2024, a non-cash charge of **$8.7 million** was recorded for the abandonment of an ERP project, included in 'Abandonment of construction in process'[475](index=475&type=chunk) - Assets held for sale totaled **$3.1 million** as of June 30, 2025, related to the former Malibu Electronics manufacturing building[477](index=477&type=chunk) [Note 7. Goodwill and Other Intangible Assets, net](index=96&type=section&id=Note%207.%20Goodwill%20and%20Other%20Intangible%20Assets%2C%20net) This note provides a detailed breakdown of the company's goodwill and other intangible assets, including impairment charges and amortization expense Goodwill by Segment (As of June 30, in thousands) | Segment | FY2025 | FY2024 | | :---------------- | :-------- | :-------- | | Malibu | $11,990 | $12,099 | | Saltwater Fishing | $19,525 | $19,525 | | Cobalt | $19,791 | $19,791 | | Consolidated | $51,306 | $51,415 | Other Intangible Assets, net (As of June 30, in thousands) | Category | FY2025 | FY2024 | | :-------------------------------- | :---------- | :---------- | | Definite-lived intangibles, net | $89,634 | $96,449 | | Indefinite-lived trade names, net | $79,000 | $79,000 | | Total | $168,634 | $175,449 | - An impairment charge of **$49.2 million** for goodwill and **$39.2 million** for trade names was recorded in FY2024 related to the Maverick Boat Group reporting unit[481](index=481&type=chunk) - Amortization expense for intangibles was **$6.8 million** for FY2025, FY2024, and FY2023[482](index=482&type=chunk) [Note 8. Accrued Expenses](index=98&type=section&id=Note%208.%20Accrued%20Expenses) This note provides a detailed breakdown of the company's accrued expenses, including warranties, dealer incentives, and legal fees Accrued Expenses (As of June 30, in thousands) | Category | FY2025 | FY2024 | | :-------------------------------- | :---------- | :---------- | | Warranties | $40,970 | $37,967 | | Dealer incentives | $7,057 | $28,911 | | Accrued compensation | $15,438 | $13,791 | | Current operating lease liabilities | $2,408 | $2,177 | | Accrued legal and professional fees | $33,729 | $22,467 | | Customer deposits | $3,508 | $4,270 | | Government grant | $4,089 | $5,867 | | Other accrued expenses | $2,571 | $3,980 | | Total | $109,770 | $119,430 | - Accrued legal and professional fees include **$21.0 million** in insurance coverage proceeds subject to reservation of rights and **$7.8 million** related to a probable insurance claim settlement[484](index=484&type=chunk) - A **$3.5 million** accrued amount relates to the settlement agreement with Tommy's Boats' Chapter 11 Trustee[484](index=484&type=chunk) - Government grant of **$4.1 million** is related to an Economic Development Grant from the State of Tennessee for job creation[485](index=485&type=chunk) [Note 9. Product Warranties](index=98&type=section&id=Note%209.%20Product%20Warranties) This note details the company's product warranty liability, including estimates, expenses, and claims paid Product Warranty Liability (Fiscal Year Ended June 30, in thousands) | Metric | FY2025 | FY2024 | FY2023 | | :------------------ | :-------- | :-------- | :-------- | | Beginning balance | $37,967 | $41,709 | $38,673 | | Add: Warranty Expense | $29,658 | $23,744 | $24,812 | | Less: Warranty claims paid | $(26,655) | $(27,486) | $(21,776) | | Ending balance | $40,970 | $37,967 | $41,709 | - The company estimates warranty costs based on historical claims trends, unit sales, and cost per claim, with a hypothetical **10% change** in estimate affecting net income by approximately **$4.1 million**[353](index=353&type=chunk)[487](index=487&type=chunk)[488](index=488&type=chunk) [Note 10. Financing](index=99&type=section&id=Note%2010.%20Financing) This note provides information on the company's financing arrangements, including its revolving credit facility and outstanding debt Outstanding Debt (As of June 30, in thousands) | Category | FY2025 | FY2024 | | :------------------ | :-------- | :-------- | | Revolving credit loan | $18,000 | — | | Total debt | $18,000 | — | | Long-term debt less current maturities | $18,000 | — | - The company has a **$350.0 million** revolving credit facility maturing July 8, 2027, with **$18.0 million** outstanding and **$330.3 million** available as of June 30, 2025[327](index=327&type=chunk)[339](index=339&type=chunk)[491](index=491&type=chunk) - Borrowings bear variable interest rates (Base Rate or SOFR plus applicable margin), with the rate at **7.75%** as of June 30, 2025[493](index=493&type=chunk) - The company was in compliance with all financial covenants of the Credit Agreement as of June 30, 2025 and 2024[497](index=497&type=chunk) [Note 11. Leases](index=100&type=section&id=Note%2011.%20Leases) This note provides details on the company's lease arrangements, including right-of-use assets and lease liabilities Operating Lease Liabilities (As of June 30, in thousands) | Category | FY2025 | FY2024 | | :-------------------------------- | :---------- | :---------- | | Right-of-use assets | $6,551 | $6,883 | | Current operating lease liabilities | $2,408 | $2,177 | | Long-term operating lease liabilities | $4,915 | $5,763 | | Total lease liabilities | $7,323 | $7,940 | - The weighted average remaining lease term was **3.02 years** in FY2025, with a weighted average discount rate of **4.64%**[501](index=501&type=chunk) [Note 12. Tax Receivable Agreement Liability](index=101&type=section&id=Note%2012.%20Tax%20Receivable%20Agreement%20Liability) This note explains the company's tax receivable agreement liability, including its calculation and anticipated payments Tax Receivable Agreement Liability (As of June 30, in thousands) | Metric | FY2025 | FY2024 | | :----------------------------------------- | :-------- | :-------- | | Beginning balance | $40,613 | $43,465 | | Additions (reductions) to tax receivable agreement | $167 | $1,320 | | Adjustment for change in estimated state tax rate or benefits | $(347) | $36 | | Payment under tax receivable agreement | — | $(4,208) | | Ending balance | $40,433 | $40,613 | | Less current portion | $(271) | — | | Total | $40,162 | $40,613 | - The liability represents **85%** of the tax benefits from increased tax basis due to LLC Unit exchanges, determined on an undiscounted basis[502](index=502&type=chunk)[507](index=507&type=chunk) - The next payment under the agreement is anticipated after considering net operating loss utilization and sufficient taxable income[507](index=507&type=chunk) [Note 13. Income Taxes](index=102&type=section&id=Note%2013.%20Income%20Taxes) This note provides detailed information on the company's income tax expense, effective tax rate, deferred tax assets and liabilities, and unrecognized tax benefits Income Tax Expense (Benefit) (Fiscal Year Ended June 30, in thousands) | Category | FY2025 | FY2024 | FY2023 | | :------------------ | :-------- | :-------- | :-------- | | Current tax expense | $1,472 | $3,127 | $49,864 | | Deferred tax expense (benefit) | $3,551 | $(4,469) | $(16,283) | | Total | $5,023 | $(1,342) | $33,581 | Effective Tax Rate Reconciliation (Fiscal Year Ended June 30) | Factor | FY2025 | FY2024 | FY2023 | | :----------------------------------------- | :----- | :----- | :----- | | Federal tax provision (benefit) at statutory rate | 21.0% | (21.0)% | 21.0% | | State income taxes, net of federal benefit | 2.4% | (0.3)% | 3.5% | | Impairment charges - Maverick | — | 17.9% | — | | Non-controlling interest | (0.5)% | (0.2)% | (0.5)% | | Total income tax (benefit) continuing operations | 24.8% | (2.3)% | 23.7% | - The effective tax rate for FY2025 was **24.8%**, increased by stock-based compensation shortfall, federal tax code limitations, and state taxes, partially offset by research tax credits[300](index=300&type=chunk) - A valuation allowance of **$17.5 million** (FY2025) and **$17.4 million** (FY2024) was recorded against deferred tax assets, primarily for state net operating losses[516](index=516&type=chunk) - Unrecognized tax benefits totaled **$1.8 million** as of June 30, 2025, with **$0.3 million** reasonably possible to reverse within **12 months**[518](index=518&type=chunk) [Note 14. Stockholders' Equity](index=105&type=section&id=Note%2014.%20Stockholders%27%20Equity) This note provides information on the company's capital stock, including authorized shares, issued and outstanding shares, and stock repurchase programs - The company is authorized to issue **100 million shares** of Class A Common Stock, **25 million shares** of Class B Common Stock, and **25 million shares** of Preferred Stock[521](index=521&type=chunk) - As of June 30, 2025, **12 shares** of Class B Common Stock were issued and outstanding[524](index=524&type=chunk) - The company repurchased **997,791 shares** of Class A Common Stock for **$36.0 million** in cash during FY2025 under its repurchase programs[247](index=247&type=chunk)[527](index=527&type=chunk) - A new **$50.0 million** stock repurchase program (Fiscal 2026 Repurchase Program) was authorized for July 1, 2025, to June 30, 2026[528](index=528&type=chunk) [Note 15. Stock-Based Compensation](index=107&type=section&id=Note%2015.%20Stock-Based%20Compensation) This note details the company's stock-based compensation plans, including expense recognition, unrecognized costs, and shares available for issuance - Stock compensation expense for all equity awards was **$5.9 million** in FY2025, **$4.9 million** in FY2024, and **$5.9 million** in FY2023[565](index=565&type=chunk) - As of June 30, 2025, total unrecognized compensation cost related to nonvested, share-based compensation was **$9.2 million**, expected to be recognized over a weighted-average period of **two years**[564](index=564&type=chunk) - The 2024 Performance Incentive Plan (2024 Plan) replaced the 2014 Incentive Plan, effective October 23, 2024, with **864,430 shares** available for future issuance[557](index=557&type=chunk) [Note 16. Net Earnings (Loss) Per Share](index=111&type=section&id=Note%2016.%20Net%20Earnings%20(Loss)%20Per%20Share) This note provides the calculation of basic and diluted net earnings (loss) per share, including the reconciliation of weighted-average shares outstanding Net Income (Loss) Per Share (Fiscal Year Ended June 30) | Metric | FY2025 | FY2024 | FY2023 | | :----------------------------------------- | :------- | :------- | :------- | | Basic net income (loss) per share | $0.76 | $(2.74) | $5.10 | | Diluted net income (loss) per share | $0.76 | $(2.74) | $5.06 | | Basic weighted-average shares outstanding | 19,664,337 | 20,439,449 | 20,501,844 | | Diluted weighted-average shares outstanding | 19,694,677 | 20,439,449 | 20,641,173 | - The calculation of diluted EPS excludes antidilutive shares (**494,980** in FY2025, **612,277** in FY2024, **516,205** in FY2023)[570](index=570&type=chunk) [Note 17. Commitments and Contingencies](index=112&type=section&id=Note%2017.%20Commitments%20and%20Contingencies) This note discloses the company's various commitments and contingencies, including floor plan financing, legal proceedings, and insurance claims - The total amount financed under floor plan financing programs with repurchase obligations was **$364.1 million** as of June 30, 2025[571](index=571&type=chunk) - In FY2025, the company repurchased **22 units** (including **19** related to Tommy's Boats bankruptcy) under repurchase agreements, with no reserve carried as of June 30, 2025[572](index=572&type=chunk)[573](index=573&type=chunk) - The company settled the Batchelder product liability matters for **$100.0 million** in FY2023 and is pursuing claims against insurance carriers for full recovery, having received **$21.0 million** as of June 30, 2025[179](index=179&type=chunk)[332](index=332&type=chunk)[579](index=579&type=chunk)[580](index=580&type=chunk) - A securities class action lawsuit was filed in April 2024, with a proposed settlement of **$7.8 million** in July 2025, expected to be covered by insurance[177](index=177&type=chunk)[584](index=584&type=chunk) - Multiple derivative actions and a customer class action lawsuit are ongoing, with the company intending to vigorously defend itself[178](index=178&type=chunk)[179](index=179&type=chunk)[585](index=585&type=chunk)[586](index=586&type=chunk) [Note 18. Related Party Transactions](index=115&type=section&id=Note%2018.%20Related%20Party%20Transactions) This note describes transactions between the company and its related parties, including compensation for non-employee directors - Two non-employee directors, who are also original shareholders, received **$408 thousand** in FY2025 for their services[587](index=587&type=chunk) [Note 19. Segment Reporting](index=115&type=section&id=Note%2019.%20Segment%20Reporting) This note provides financial information about the company's operating segments, including segment adjusted EBITDA Segment Adjusted EBITDA (Fiscal Year Ended June 30, 2025, in thousands) | Segment | Segment Adjusted EBITDA | | :---------------- | :---------------------- | | Malibu | $60,611 | | Saltwater Fishing | $26,672 | | Cobalt | $17,856 | | Total | $105,139 | - Segment Adjusted EBITDA is used by the Chief Operating Decision Maker (CODM) to evaluate segment performance, excluding interest, taxes, depreciation, amortization, impairment, and non-cash/non-operating expenses[588](index=588&type=chunk)[591](index=591&type=chunk) [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=118&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) There have been no changes in or disagreements with accountants on accounting and financial disclosure [Item 9A. Controls and Procedures](index=118&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025 - Disclosure controls and procedures were deemed effective at a reasonable assurance level as of June 30, 2025[599](index=599&type=chunk) - KPMG LLP issued an attestation report on the effectiveness of internal control over financial reporting as of June 30, 2025[601](index=601&type=chunk) - No material changes in internal control over financial reporting occurred during the fourth quarter ended June 30, 2025[602](index=602&type=chunk) [Item 9B. Other Information](index=118&type=section&id=Item%209B.%20Other%20Information) This item contains no other information [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=118&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company PART III [Item 10. Directors, Executive Officers and Corporate Governance](index=119&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) The company has adopted a Code of Business Conduct and a Code of Ethics applicable to its employees, directors, and officers - The company has a Code of Business Conduct and a Code of Ethics for employees, directors, and officers[605](index=605&type=chunk) - An insider trading policy and procedures are in place to govern securities transactions by directors, officers, and employees[606](index=606&type=chunk) [Item 11. Executive Compensation](index=119&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the Proxy Statement [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=119&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership of certain beneficial owners and management, and related stockholder matters, is incorporated by reference from the Proxy Statement [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=119&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding certain relationships and related transactions, and director independence, is incorporated by reference from the Proxy Statement [Item 14. Principal Accountant Fees and Services](index=119&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) KPMG LLP is the company's independent registered public accounting firm - KPMG LLP, Nashville, TN, is the company's independent registered public accounting firm[610](index=610&type=chunk) PART IV [Item 15. Exhibits and Financial Statement Schedules](index=120&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the consolidated financial statements included in Part II, Item 8, and provides an index of exhibits filed as part of this Annual Report on Form 10-K - The consolidated financial statements for fiscal years ended June 30, 2025, 2024, and 2023 are included in Part II, Item 8[615](index=615&type=chunk) - Exhibits include the Certificate of Incorporation, Bylaws, LLC Agreement, Tax Receivable Agreement, Credit Agreement, employment agreements, and incentive plans[614](index=614&type=chunk)[616](index=616&type=chunk) [Item 16. Form 10-K Summary](index=123&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item indicates that no Form 10-K summary is provided [SIGNATURES](index=124&type=section&id=SIGNATURES) The repo

Fiscal Year 2025 Performance - Malibu Boats Inc's net sales decreased by 2.6% year-over-year, reaching $807.6 million[19,40] - Adjusted EBITDA decreased by 9.1% year-over-year to $74.8 million[19,44] - Adjusted net income per share for fiscal year 2025 was $1.58, compared to $2.01 in fiscal year 2024[17] - The company generated $29 million of free cash flow in fiscal year 2025[15,54] - Gross margin increased by 10 bps year-over-year to 17.8%[19,43] Q4 Fiscal Year 2025 Performance - Net sales for Q4 2025 were $158.7 million, compared to $207.0 million in Q4 2024[34] - Gross margin for Q4 2025 was 7.9%, compared to 15.8% in Q4 2024[37] - Adjusted EBITDA for Q4 2025 was $(4.1) million, compared to $19.7 million in Q4 2024[38] Fiscal Year 2026 Outlook - The company anticipates consolidated net sales to be flat to down mid-single digits[46] - The company projects an adjusted EBITDA margin between 8% and 9%[46]

```markdown [Executive Summary](index=1&type=section&id=Executive%20Summary) [Fourth Quarter Fiscal 2025 Highlights](index=1&type=section&id=Fourth%20Quarter%20Fiscal%202025%20Highlights) Malibu Boats, Inc. reported a strong fourth quarter for fiscal year 2025, with significant increases in net sales, unit volume, and profitability compared to the prior year, driven by improved market conditions and strategic initiatives | Metric | Q4 FY25 | Q4 FY24 | Change (%) | | :------------------------------------- | :-------- | :-------- | :--------- | | Net sales | $207.0 million | $158.7 million | +30.4% | | Unit volume | 1,221 units | 1,045 units | +16.8% | | Gross profit | $32.7 million | $12.5 million | +162.1% | | Net income (loss) | $4.8 million | $(19.6) million | +124.5% | | Adjusted EBITDA | $19.7 million | $(4.1) million | +580.6% | | Diluted EPS (Net income) | $0.24 | $(0.94) | +125.5% | | Adjusted net income per share | $0.42 | $(0.40) | +205.0% | [Fiscal Year 2025 Highlights](index=1&type=section&id=Fiscal%20Year%202025%20Highlights) Despite a challenging marine industry environment, Malibu Boats, Inc. achieved a turnaround in net income for fiscal year 2025, though net sales and unit volume saw slight decreases compared to fiscal year 2024 | Metric | FY25 | FY24 | Change (%) | | :------------------------------------- | :------- | :------- | :--------- | | Net sales | $807.6 million | $829.0 million | -2.6% | | Unit volume | 4,898 units | 5,385 units | -9.0% | | Gross profit | $144.1 million | $147.1 million | -2.0% | | Net income (loss) | $15.2 million | $(56.4) million | +127.0% | | Adjusted EBITDA | $74.8 million | $82.2 million | -9.1% | | Diluted EPS (Net income) | $0.76 | $(2.74) | +127.7% | | Adjusted net income per share | $1.58 | $2.01 | -21.4% | [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Steve Menneto highlighted FY25 as challenging but successful in laying groundwork for future outperformance, focusing on dealer inventory reduction, network refresh, innovation with 11 new MY26 models, and operational readiness. CFO Bruce Beckman emphasized maintaining a disciplined approach to dealer health in FY26, leveraging cash generation for business investment, and positioning for significant value creation when demand normalizes - CEO Steve Menneto noted FY25 was challenging for the marine industry but praised efforts in supporting dealers to reduce inventory and refreshing the dealer network, positioning the company to outperform the industry. The company continued investing in people, operational readiness, and innovation, introducing **eleven new Model Year 2026 models**[4](index=4&type=chunk) - CFO Bruce Beckman stated that in FY26, the company will maintain a disciplined approach to dealer health, expecting retail headwinds to persist. He expressed confidence in outperforming the industry and leveraging cash generation for continued business investment to position for significant value creation when industry growth returns[4](index=4&type=chunk)[6](index=6&type=chunk) [Consolidated Financial Performance Overview](index=2&type=section&id=Consolidated%20Financial%20Performance%20Overview) [Summary Financial Data (Q4 and FY25)](index=2&type=section&id=Summary%20Financial%20Data%20(Q4%20and%20FY25)) The company's summary financial data for Q4 and the full fiscal year 2025 shows a strong rebound in Q4 profitability, contrasting with a slight decline in annual net sales but a significant improvement in annual net income from a loss to a profit | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Fiscal Year Ended June 30, 2025 | Fiscal Year Ended June 30, 2024 | | :---------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net Sales | $207,039 | $158,712 | $807,561 | $829,035 | | Gross Profit | $32,740 | $12,493 | $144,091 | $147,095 | | Gross Profit Margin | 15.8% | 7.9% | 17.8% | 17.7% | | Net Income (Loss) | $4,793 | $(19,598) | $15,240 | $(56,443) | | Net Income (Loss) Margin | 2.3% | (12.3)% | 1.9% | (6.8)% | | Adjusted EBITDA | $19,657 | $(4,090) | $74,770 | $82,237 | | Adjusted EBITDA Margin | 9.5% | (2.6)% | 9.3% | 9.9% | [Fourth Quarter Fiscal 2025 Detailed Financial Analysis](index=2&type=section&id=Fourth%20Quarter%20Fiscal%202025%20Detailed%20Financial%20Analysis) [Net Sales and Unit Volume](index=2&type=section&id=Net%20Sales%20and%20Unit%20Volume%20(Q4%20FY25)) Net sales for Q4 FY25 increased by 30.4% to $207.0 million, driven by higher unit volumes in the Malibu segment, favorable model mix, decreased promotional costs, and inflation-driven price increases. Overall unit volume increased by 16.8% to 1,221 units | Metric | Q4 FY25 | Q4 FY24 | Change | | :---------- | :-------- | :-------- | :----- | | Net Sales | $207.0 million | $158.7 million | +30.4% | | Unit Volume | 1,221 units | 1,045 units | +16.8% | - The increase in net sales was primarily due to increased unit volumes in the Malibu segment, a favorable model mix across all segments, decreased promotional costs, and inflation-driven year-over-year price increases. This was partially offset by decreased unit volumes in the Cobalt and Saltwater Fishing segments and an unfavorable segment mix[8](index=8&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance%20(Q4%20FY25)) In Q4 FY25, the Malibu segment saw substantial growth in both net sales and unit volumes, while Saltwater Fishing and Cobalt segments experienced unit volume decreases but net sales increases due to favorable model mix, lower promotional costs, and price increases [Malibu Segment](index=2&type=section&id=Malibu%20Segment%20(Q4%20FY25)) Malibu segment net sales surged by 114.0% to $80.3 million, with unit volumes increasing by 78.7%, primarily recovering from lower wholesale shipments in the prior year due to elevated dealer inventory | Metric | Q4 FY25 | Q4 FY24 | Change | | :---------- | :-------- | :-------- | :----- | | Net Sales | $80.3 million | $37.5 million | +114.0% | | Unit Volume | 570 units | 319 units | +78.7% | - The increase in net sales was driven by an increase in units, a favorable model mix, decreased promotional costs, and inflation-driven year-over-year price increases[9](index=9&type=chunk) [Saltwater Fishing Segment](index=2&type=section&id=Saltwater%20Fishing%20Segment%20(Q4%20FY25)) Saltwater Fishing segment net sales increased by 2.7% to $72.9 million, despite a 9.3% decrease in unit volumes, attributed to a favorable model mix, reduced promotional costs, and inflation-driven price increases | Metric | Q4 FY25 | Q4 FY24 | Change | | :---------- | :-------- | :-------- | :----- | | Net Sales | $72.9 million | $71.0 million | +2.7% | | Unit Volume | 323 units | 356 units | -9.3% | - Unit volumes decreased primarily due to lower wholesale shipments driven by lower retail activity and dealers' desire to hold less inventory. The increase in net sales was driven by a favorable model mix, decreased promotional costs, and inflation-driven year-over-year price increases, partially offset by a decrease in units[10](index=10&type=chunk) [Cobalt Segment](index=2&type=section&id=Cobalt%20Segment%20(Q4%20FY25)) Cobalt segment net sales rose by 7.2% to $53.8 million, even with an 11.4% decline in unit volumes, benefiting from a favorable model mix, decreased promotional costs, and inflation-driven price adjustments | Metric | Q4 FY25 | Q4 FY24 | Change | | :---------- | :-------- | :-------- | :----- | | Net Sales | $53.8 million | $50.2 million | +7.2% | | Unit Volume | 328 units | 370 units | -11.4% | - Unit volumes decreased primarily due to lower wholesale shipments driven by lower retail activity and dealers' desire to hold less inventory. The increase in net sales was driven primarily by a favorable model mix, decreased promotional costs, and inflation-driven year-over-year price increases, partially offset by a decrease in units[11](index=11&type=chunk) [Net Sales Per Unit](index=2&type=section&id=Net%20Sales%20Per%20Unit%20(Q4%20FY25)) Consolidated net sales per unit increased by 11.6% to $169,565 in Q4 FY25, with all segments showing increases driven by favorable model mix, decreased promotional costs, and inflation-driven price increases | Segment | Q4 FY25 Net Sales Per Unit | Q4 FY24 Net Sales Per Unit | Change (%) | | :---------------- | :------------------------- | :------------------------- | :--------- | | Consolidated | $169,565 | $151,112 | +11.6% | | Malibu | $140,951 | $117,699 | +19.8% | | Saltwater Fishing | $225,582 | $199,298 | +13.2% | | Cobalt | $164,128 | $135,676 | +21.0% | - The increase in net sales per unit across all segments was driven by favorable model mix, decreased promotional costs, and inflation-driven year-over-year price increases[12](index=12&type=chunk)[13](index=13&type=chunk) [Cost of Sales and Gross Profit](index=3&type=section&id=Cost%20of%20Sales%20and%20Gross%20Profit%20(Q4%20FY25)) Cost of sales increased by 19.2% to $174.3 million due to higher volumes and inflationary pressures. Gross profit significantly increased by 162.1% to $32.7 million, with gross margin expanding by 790 basis points to 15.8%, primarily due to higher sales revenue, decreased promotional costs, and a favorable model mix | Metric | Q4 FY25 | Q4 FY24 | Change | | :----------- | :-------- | :-------- | :----- | | Cost of Sales | $174.3 million | $146.2 million | +19.2% | | Gross Profit | $32.7 million | $12.5 million | +162.1% | | Gross Margin | 15.8% | 7.9% | +790 bps | - The increase in cost of sales was primarily driven by a **16.8% increase in volumes** and continuing inflationary pressure on costs. Gross profit increase was driven primarily by higher sales revenue, decreased promotional costs across all segments, and an increased mix of models that carry a higher gross margin[14](index=14&type=chunk)[15](index=15&type=chunk) [Operating Expenses](index=3&type=section&id=Operating%20Expenses%20(Q4%20FY25)) Selling and marketing expenses increased by 10.7% to $5.4 million, mainly due to compensation and promotional events, but decreased as a percentage of sales. General and administrative expenses decreased by 12.7% to $18.8 million, driven by lower legal, professional, and IT costs, also decreasing as a percentage of sales | Expense Type | Q4 FY25 | Q4 FY24 | Change (%) | % of Sales (Q4 FY25) | % of Sales (Q4 FY24) | Change (bps) | | :-------------------------- | :-------- | :-------- | :--------- | :------------------- | :------------------- | :----------- | | Selling and marketing | $5.4 million | $4.9 million | +10.7% | 2.6% | 3.1% | -50 | | General and administrative | $18.8 million | $21.6 million | -12.7% | 9.1% | 13.6% | -450 | | Amortization | $1.7 million | $1.7 million | 0.0% | - | - | - | - The decrease in general and administrative expenses was driven primarily by a decrease in legal and professional fees, licenses and permits, and IT infrastructure expenses, partially offset by an increase in compensation and personnel-related expense[16](index=16&type=chunk) [Operating Income, Net Income, and Adjusted EBITDA](index=3&type=section&id=Operating%20Income,%20Net%20Income,%20and%20Adjusted%20EBITDA%20(Q4%20FY25)) The company significantly improved its operating income to $6.8 million from a loss, net income to $4.8 million from a loss, and Adjusted EBITDA to $19.7 million from a negative figure, reflecting strong operational recovery and margin expansion | Metric | Q4 FY25 | Q4 FY24 | Change (%) | Margin (Q4 FY25) | Margin (Q4 FY24) | Change (bps) | | :------------------ | :-------- | :-------- | :--------- | :--------------- | :--------------- | :----------- | | Operating Income (Loss) | $6.8 million | $(24.4) million | N/A | - | - | - | | Net Income (Loss) | $4.8 million | $(19.6) million | +124.5% | 2.3% | (12.3)% | +1460 | | Adjusted EBITDA | $19.7 million | $(4.1) million | +580.6% | 9.5% | (2.6)% | +1210 | [Fiscal Year 2025 Detailed Financial Analysis](index=3&type=section&id=Fiscal%20Year%202025%20Detailed%20Financial%20Analysis) [Net Sales and Unit Volume](index=3&type=section&id=Net%20Sales%20and%20Unit%20Volume%20(FY25)) For fiscal year 2025, net sales decreased by 2.6% to $807.6 million, and unit volume decreased by 9.0% to 4,898 units. This decline was primarily due to lower wholesale shipments in the Saltwater Fishing and Cobalt segments, driven by reduced retail activity and dealers' efforts to lower inventory | Metric | FY25 | FY24 | Change | | :---------- | :-------- | :-------- | :----- | | Net Sales | $807.6 million | $829.0 million | -2.6% | | Unit Volume | 4,898 units | 5,385 units | -9.0% | - The decrease in net sales was driven primarily by decreased unit volumes in the Saltwater Fishing and Cobalt segments resulting from decreased wholesale shipments and an unfavorable segment mix, partially offset by increased unit volumes in the Malibu segment, favorable model mix across all segments, and inflation-driven year-over-year price increases[18](index=18&type=chunk) [Segment Performance](index=4&type=section&id=Segment%20Performance%20(FY25)) In FY25, the Malibu segment showed growth in net sales and unit volumes, while Saltwater Fishing and Cobalt segments experienced declines in both, primarily due to lower wholesale shipments driven by reduced retail activity and dealer inventory management [Malibu Segment](index=4&type=section&id=Malibu%20Segment%20(FY25)) Malibu segment net sales increased by 12.0% to $312.7 million, with unit volumes up by 42 units, largely due to a recovery from lower wholesale shipments in the prior year caused by high dealer inventory levels | Metric | FY25 | FY24 | Change | | :---------- | :-------- | :-------- | :----- | | Net Sales | $312.7 million | $279.1 million | +12.0% | | Unit Volume | 2,223 units | 2,181 units | +42 units | - The increase in net sales was primarily driven by an increase in units, a favorable model mix, and inflation-driven year-over-year price increases[19](index=19&type=chunk) [Saltwater Fishing Segment](index=4&type=section&id=Saltwater%20Fishing%20Segment%20(FY25)) Saltwater Fishing segment net sales decreased by 14.6% to $279.6 million, with unit volumes down by 367 units, primarily due to lower wholesale shipments driven by reduced retail activity and dealers' desire for lower inventory | Metric | FY25 | FY24 | Change | | :---------- | :-------- | :-------- | :----- | | Net Sales | $279.6 million | $327.5 million | -14.6% | | Unit Volume | 1,266 units | 1,633 units | -367 units | - The decrease in net sales was driven by a decrease in units and increased promotional costs, partially offset by a favorable model mix and inflation-driven year-over-year price increases[20](index=20&type=chunk) [Cobalt Segment](index=4&type=section&id=Cobalt%20Segment%20(FY25)) Cobalt segment net sales decreased by 3.2% to $215.2 million, with unit volumes down by 162 units, mainly due to lower wholesale shipments resulting from decreased retail activity and dealers' inventory reduction efforts | Metric | FY25 | FY24 | Change | | :---------- | :-------- | :-------- | :----- | | Net Sales | $215.2 million | $222.3 million | -3.2% | | Unit Volume | 1,409 units | 1,571 units | -162 units | - The decrease in net sales was driven primarily by a decrease in units, partially offset by a favorable model mix and inflation-driven year-over-year price increases[21](index=21&type=chunk) [Net Sales Per Unit](index=4&type=section&id=Net%20Sales%20Per%20Unit%20(FY25)) Consolidated net sales per unit increased by 7.1% to $164,876 for FY25, with all segments experiencing increases due to favorable model mix and inflation-driven price increases, though Saltwater Fishing was partially offset by higher promotional costs | Segment | FY25 Net Sales Per Unit | FY24 Net Sales Per Unit | Change (%) | | :---------------- | :---------------------- | :---------------------- | :--------- | | Consolidated | $164,876 | $153,949 | +7.1% | | Malibu | $140,665 | $127,978 | +9.9% | | Saltwater Fishing | $220,881 | $200,551 | +10.1% | | Cobalt | $152,752 | $141,502 | +7.9% | - Net sales per unit increases across segments were driven by a favorable model mix and inflation-driven year-over-year price increases. Saltwater Fishing's increase was partially offset by increased promotional costs[22](index=22&type=chunk) [Cost of Sales and Gross Profit](index=4&type=section&id=Cost%20of%20Sales%20and%20Gross%20Profit%20(FY25)) Cost of sales decreased by 2.7% to $663.5 million, primarily due to a 9.0% decrease in volumes, partially offset by higher per unit material and labor costs and increased warranty expense. Gross profit decreased by 2.0% to $144.1 million, but gross margin slightly increased from 17.7% to 17.8% | Metric | FY25 | FY24 | Change | | :----------- | :-------- | :-------- | :----- | | Cost of Sales | $663.5 million | $681.9 million | -2.7% | | Gross Profit | $144.1 million | $147.1 million | -2.0% | | Gross Margin | 17.8% | 17.7% | +10 bps | - The decrease in cost of sales was primarily driven by a **9.0% decrease in volumes**, partially offset by higher per unit material and labor costs, increased warranty expense, and increased depreciation expense. Gross profit decrease was primarily due to lower net sales, partially offset by decreased cost of sales[23](index=23&type=chunk)[24](index=24&type=chunk) [Operating Expenses](index=4&type=section&id=Operating%20Expenses%20(FY25)) Total operating expenses decreased significantly by 39.8% in FY25, mainly due to the absence of $88.4 million in impairment charges related to Maverick Boat Group recognized in FY24. General and administrative expenses increased by 21.1% to $92.5 million, driven by a legal settlement, professional fees, and compensation, while selling and marketing expenses slightly increased | Expense Type | FY25 | FY24 | Change (%) | % of Sales (FY25) | % of Sales (FY24) | Change (bps) | | :------------------------------------- | :-------- | :-------- | :--------- | :---------------- | :---------------- | :----------- | | Total Operating Expenses | $122.4 million | $203.1 million | -39.8% | - | - | - | | General and administrative | $92.5 million | $76.3 million | +21.1% | 11.4% | 9.2% | +220 | | Selling and marketing | $23.1 million | $22.8 million | +1.3% | 2.9% | 2.7% | +20 | | Goodwill and other intangible asset impairment | $0 | $88.4 million | -100.0% | - | - | - | | Abandonment of construction in process | $0 | $8.7 million | -100.0% | - | - | - | | Amortization | $6.8 million | $6.8 million | 0.0% | - | - | - | - The decrease in total operating expenses was primarily due to **$88.4 million in impairment charges** related to Maverick Boat Group in fiscal year 2024, which did not recur in fiscal year 2025. General and administrative expenses increased due to a **$3.5 million legal settlement**, other related legal fees, and increases in stock-based compensation, incentive pay, and salaries[25](index=25&type=chunk)[26](index=26&type=chunk) [Operating Income, Net Income, and Adjusted EBITDA](index=5&type=section&id=Operating%20Income,%20Net%20Income,%20and%20Adjusted%20EBITDA%20(FY25)) Operating income for FY25 improved significantly to $21.8 million from a loss in FY24. Net income also turned positive to $15.2 million from a loss, with net income margin increasing. Adjusted EBITDA decreased by 9.1% to $74.8 million, and Adjusted EBITDA margin slightly declined | Metric | FY25 | FY24 | Change (%) | Margin (FY25) | Margin (FY24) | Change (bps) | | :------------------ | :-------- | :-------- | :--------- | :-------------- | :-------------- | :----------- | | Operating Income (Loss) | $21.8 million | $(55.9) million | N/A | - | - | - | | Net Income (Loss) | $15.2 million | $(56.4) million | +127.0% | 1.9% | (6.8)% | +870 | | Adjusted EBITDA | $74.8 million | $82.2 million | -9.1% | 9.3% | 9.9% | -60 | **Adjusted EBITDA by Segment (FY25 vs FY24):** | Segment | FY25 Adjusted EBITDA | FY24 Adjusted EBITDA | Change (%) | | :---------------- | :------------------- | :------------------- | :--------- | | Malibu | $60.6 million | $42.6 million | +42.3% | | Saltwater Fishing | $26.7 million | $35.5 million | -24.9% | | Cobalt | $17.9 million | $22.7 million | -21.2% | [Fiscal Year 2026 Outlook](index=5&type=section&id=Fiscal%20Year%202026%20Outlook) [Guidance](index=5&type=section&id=Guidance) For fiscal year 2026, Malibu Boats, Inc. anticipates net sales to be flat to down mid-single digits year-over-year, with an Adjusted EBITDA margin ranging from 8% to 9%. The company has not provided GAAP reconciliations for Adjusted EBITDA margin guidance due to the unreasonable effort required to forecast certain items - For the full fiscal year 2026, Malibu anticipates net sales to be **flat to down mid-single digits year-over-year**[29](index=29&type=chunk) - Adjusted EBITDA margin is expected to range from **8% to 9%** for fiscal year 2026[29](index=29&type=chunk) - The company has not provided reconciliations of guidance for Adjusted EBITDA margin, citing the unreasonable efforts exception under Regulation S-K, as forecasting certain GAAP financial measures (e.g., vertical integration costs, stock-based compensation, litigation expenses) is difficult[30](index=30&type=chunk) [Corporate Information](index=5&type=section&id=Corporate%20Information) [About Malibu Boats, Inc.](index=5&type=section&id=About%20Malibu%20Boats,%20Inc.) Malibu Boats, Inc. is a leading designer, manufacturer, and marketer of recreational powerboats, including performance sport, sterndrive, and outboard boats, operating through brands like Malibu, Axis, Cobalt, Pursuit, Cobia, Pathfinder, Maverick, and Hewes - Malibu Boats, Inc. (MBUU) is a designer, manufacturer, and marketer of a diverse range of recreational powerboats, including performance sport, sterndrive, and outboard boats[32](index=32&type=chunk) - The company holds market leadership in performance sport boats (Malibu, Axis), 20'-40' sterndrive boats (Cobalt), and saltwater fishing boats (Pursuit, Cobia, Pathfinder, Maverick, Hewes)[32](index=32&type=chunk) [Webcast and Conference Call Information](index=5&type=section&id=Webcast%20and%20Conference%20Call%20Information) Malibu Boats, Inc. hosted a webcast and conference call on August 28, 2025, to discuss its fourth quarter and fiscal year 2025 results, with replay available on its investor relations website - The company hosted a webcast and conference call on Thursday, August 28, 2025, at 8:30 a.m. Eastern Time to discuss fourth quarter and fiscal year 2025 results[31](index=31&type=chunk) - Investors and analysts could participate by dialing (833) 630-1956 or (412) 317-1837, or listen to a live webcast via the Investor Relations section of the company's website[31](index=31&type=chunk) [Investor Contacts](index=8&type=section&id=Investor%20Contacts) Investor inquiries can be directed to Bruce Beckman, Chief Financial Officer of Malibu Boats, Inc., via phone or email - Investor contacts are Bruce Beckman, Chief Financial Officer of Malibu Boats, Inc., reachable at (865) 458-5478 or InvestorRelations@MalibuBoats.com[44](index=44&type=chunk) [Non-GAAP Financial Measures and Reconciliations](index=5&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) [Definition of Non-GAAP Measures](index=5&type=section&id=Definition%20of%20Non-GAAP%20Measures) The report defines Adjusted EBITDA and Adjusted Net Income per Share as non-GAAP financial measures, explaining their calculation and purpose for management and investors to assess core operating performance by excluding certain non-recurring or non-operating expenses - Adjusted EBITDA is defined as net income (loss) before interest expense, income taxes, depreciation, amortization, goodwill and other intangible asset impairment expense, and non-cash, non-operating expenses or other expenses not indicative of ongoing operations[35](index=35&type=chunk) - Adjusted net income per share is a newly disclosed non-GAAP measure for fiscal 2025, replacing adjusted fully distributed net income (loss). It excludes similar non-operating items from net income (loss) attributable to Malibu Boats, Inc. per share, and reflects an adjustment for income tax expense on adjusted income before income taxes at an estimated effective income tax rate[37](index=37&type=chunk)[38](index=38&type=chunk) - These non-GAAP measures are used by management to evaluate operating performance and compare results consistently, excluding items that can vary substantially across companies or are not indicative of core performance, but they should not be considered alternatives to GAAP measures[35](index=35&type=chunk)[39](index=39&type=chunk) [Reconciliation of Adjusted EBITDA](index=11&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA) The reconciliation table details the adjustments made to GAAP net income (loss) to arrive at Adjusted EBITDA for both the three months and fiscal year ended June 30, 2025 and 2024, highlighting significant non-cash and non-recurring items | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Fiscal Year Ended June 30, 2025 | Fiscal Year Ended June 30, 2024 | | :------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net income (loss) | $4,793 | $(19,598) | $15,240 | $(56,443) | | Provision (benefit) for income taxes | 2,018 | (4,801) | 5,023 | (1,342) | | Interest expense (income) | 377 | (9) | 1,883 | 1,842 | | Depreciation | 8,395 | 6,967 | 31,794 | 26,178 | | Amortization | 1,695 | 1,697 | 6,799 | 6,811 | | Goodwill and other intangible asset impairment | — | — | — | 88,389 | | Abandonment of construction in process | — | 8,735 | — | 8,735 | | Litigation settlement | — | — | 3,500 | — | | Non-recurring professional fees | 1,112 | 1,110 | 4,962 | 3,096 | | Stock-based compensation expense | 1,619 | 1,773 | 5,916 | 4,935 | | Adjustments to tax receivable agreement liability | (352) | 36 | (347) | 36 | | **Adjusted EBITDA** | **$19,657** | **$(4,090)** | **$74,770** | **$82,237** | | Net Sales | $207,039 | $158,712 | $807,561 | $829,035 | | Net Income (Loss) Margin | 2.3% | (12.3)% | 1.9% | (6.8)% | | Adjusted EBITDA Margin | 9.5% | (2.6)% | 9.3% | 9.9% | - Key adjustments include goodwill and other intangible asset impairment (**$88.4 million in FY24**), abandonment of construction in process (**$8.7 million in FY24**), and a litigation settlement (**$3.5 million in FY25**)[51](index=51&type=chunk) [Reconciliation of Adjusted Net Income (Loss)](index=12&type=section&id=Reconciliation%20of%20Adjusted%20Net%20Income%20(Loss)) The reconciliation provides a detailed breakdown of adjustments from GAAP net income (loss) attributable to Malibu Boats, Inc. to adjusted net income (loss) and adjusted net income (loss) per share for the reported periods, including non-recurring items and a normalized tax rate | (In thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Fiscal Year Ended June 30, 2025 | Fiscal Year Ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net income (loss) attributable to Malibu Boats, Inc. | $4,674 | $(19,221) | $14,879 | $(55,912) | | Goodwill and other intangible asset impairment | — | — | — | 88,389 | | Litigation settlement | — | — | 3,500 | — | | Non-recurring professional fees | 1,112 | 1,110 | 4,962 | 3,096 | | Stock-based compensation expense | 1,619 | 1,773 | 5,916 | 4,935 | | Abandonment of construction in process | — | 8,735 | — | 8,735 | | Acquisition related amortization | 1,659 | 1,659 | 6,653 | 6,672 | | Provision (benefit) for taxes | 2,018 | (4,801) | 5,023 | (1,342) | | Adjusted income (loss) before taxes | $11,082 | $(10,745) | $40,933 | $54,573 | | Income tax expense (benefit) on adjusted income (loss) before income taxes | 2,715 | (2,633) | 10,029 | 13,370 | | **Adjusted net income (loss)** | **$8,367** | **$(8,112)** | **$30,904** | **$41,203** | | Basic weighted-average shares outstanding | 19,326,533 | 20,395,625 | 19,664,337 | 20,439,449 | | Net income (loss) per share attributable to Malibu Boats, Inc. | $0.24 | $(0.94) | $0.76 | $(2.74) | | **Adjusted net income (loss) per share** | **$0.42** | **$(0.40)** | **$1.58** | **$2.01** | - The estimated normalized annual effective income tax rate used for adjusted income tax expense was **24.5%** for both fiscal years 2025 and 2024[54](index=54&type=chunk) [Cautionary Statement](index=7&type=section&id=Cautionary%20Statement) [Forward-Looking Statements](index=7&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements regarding future performance, including fiscal year 2026 guidance, which are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. These risks include fixed-cost base, manufacturing strategy, demand forecasting, raw material costs, supply chain disruptions, and general economic conditions - Forward-looking statements, identifiable by words like "believes," "anticipates," "expects," and "intends," include guidance for fiscal year 2026 net sales and Adjusted EBITDA margin, and intentions to support dealer health and generate cash flow[42](index=42&type=chunk) - These statements are subject to risks and uncertainties such as large fixed-cost base, ability to execute manufacturing strategy, demand forecasting accuracy, raw material and transportation costs, supplier disruptions, climate events, workforce needs, dependence on key management, acquisition integration, capital requirements, intellectual property protection, cybersecurity risks, and general economic conditions[43](index=43&type=chunk) - The company disclaims any obligation to update or supplement forward-looking statements, and past performance is not indicative of future results[43](index=43&type=chunk) [Condensed Consolidated Financial Statements](index=9&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Statements of Operations and Comprehensive Income (Loss)](index=9&type=section&id=Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) The condensed consolidated statements of operations and comprehensive income (loss) provide a detailed breakdown of revenues, expenses, and profitability for the three months and fiscal years ended June 30, 2025 and 2024, showing a significant shift from net loss to net income in FY25 | (In thousands, except share and per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Fiscal Year Ended June 30, 2025 | Fiscal Year Ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net sales | $207,039 | $158,712 | $807,561 | $829,035 | | Cost of sales | 174,299 | 146,219 | 663,470 | 681,940 | | Gross profit | 32,740 | 12,493 | 144,091 | 147,095 | | Operating income (loss) | 6,829 | (24,379) | 21,761 | (55,947) | | Net income (loss) | 4,793 | (19,598) | 15,240 | (56,443) | | Net income (loss) attributable to Malibu Boats, Inc. | $4,674 | $(19,221) | $14,879 | $(55,912) | | Diluted Net income (loss) per share | $0.24 | $(0.94) | $0.76 | $(2.74) | [Balance Sheets](index=10&type=section&id=Balance%20Sheets) The condensed consolidated balance sheets as of June 30, 2025, and 2024, present the company's financial position, showing a slight decrease in total assets and stockholders' equity, while total liabilities increased | (In thousands) | June 30, 2025 | June 30, 2024 | | :------------------------------------ | :------------ | :------------ | | **Assets** | | | | Total current assets | $219,892 | $202,129 | | Property, plant and equipment, net | 235,877 | 244,601 | | Goodwill | 51,306 | 51,415 | | Other intangible assets, net | 168,634 | 175,449 | | Total assets | **$734,578** | **$739,624** | | **Liabilities** | | | | Total current liabilities | $134,612 | $138,586 | | Long-term debt | 18,000 | — | | Total liabilities | **$214,745** | **$204,905** | | **Stockholders' Equity** | | | | Total stockholders' equity attributable to Malibu Boats, Inc. | $515,461 | $530,009 | | Total stockholders' equity | **$519,833** | **$534,719** | - Cash increased from **$26.9 million** in FY24 to **$37.0 million** in FY25. Inventories slightly decreased from **$145.6 million** to **$142.2 million**[48](index=48&type=chunk) ```