PART I FINANCIAL INFORMATION [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Presents the unaudited condensed consolidated financial statements for the three and nine-month periods ended March 31, 2025, and 2024 [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)%20(Unaudited)) For Q3 2025, the company reported net sales of $228.7 million and a net income of $13.2 million, a significant turnaround from the prior year's loss Consolidated Statements of Operations Highlights (in thousands) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $228,662 | $203,419 | $600,522 | $670,323 | | **Gross profit** | $45,724 | $40,333 | $111,351 | $134,602 | | **Operating income (loss)** | $17,367 | $(74,902) | $14,932 | $(31,568) | | **Net income (loss)** | $13,173 | $(67,759) | $10,447 | $(36,845) | | **Basic EPS** | $0.66 | $(3.28) | $0.52 | $(1.79) | - A significant goodwill and intangible asset impairment charge of **$88.4 million** was recorded in fiscal 2024, driving the net loss in that period[13](index=13&type=chunk) [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) Total assets increased to $758.8 million as of March 31, 2025, driven by higher cash and receivables, while liabilities rose due to credit facility drawings Consolidated Balance Sheet Highlights (in thousands) | Metric | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | | **Total current assets** | $237,938 | $202,129 | | **Total assets** | $758,766 | $739,624 | | **Total current liabilities** | $148,374 | $138,586 | | **Long-term debt** | $28,000 | $0 | | **Total liabilities** | $240,830 | $204,905 | | **Total stockholders' equity** | $517,936 | $534,719 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) For the nine months ended March 31, 2025, net cash from operations was $35.5 million, while cash used in investing decreased significantly Cash Flow Summary (in thousands) | Activity | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $35,467 | $39,221 | | **Net cash used in investing activities** | $(20,575) | $(64,092) | | **Net cash used in financing activities** | $(2,855) | $(6,875) | | **Change in cash** | $11,768 | $(31,821) | | **Cash - End of period** | $38,713 | $47,116 | [Notes to Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail revenue disaggregation, debt agreements, stock-based compensation, and significant legal proceedings across three reportable segments - The company operates and reports results under three segments: **Malibu, Saltwater Fishing, and Cobalt**[23](index=23&type=chunk)[101](index=101&type=chunk) - As of March 31, 2025, the company had **$28.0 million outstanding** under its revolving credit facility, with $320.3 million available for borrowing[49](index=49&type=chunk) - The company is involved in several legal proceedings for which it is unable to estimate the range of possible loss[94](index=94&type=chunk)[96](index=96&type=chunk)[98](index=98&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes financial performance, highlighting a Q3 sales increase but a nine-month decrease, with a cautious outlook due to market challenges [Business Outlook](index=28&type=section&id=Outlook) The company anticipates continued industry challenges from macroeconomic factors and expects dealers to reduce inventories in fiscal 2025 - The recreational powerboat industry is challenged by **high inflation and interest rates**, impacting production costs and consumer demand[113](index=113&type=chunk) - Dealers are expected to **reduce inventories further** in fiscal 2025 due to high flooring costs and a soft retail environment[114](index=114&type=chunk) - The company anticipates delivering **higher sales in the second half of fiscal 2025** relative to the prior year and the first half of fiscal 2025[118](index=118&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Q3 2025 net sales rose 12.4% driven by the Malibu segment, while nine-month sales fell 10.4% due to lower volumes across all segments Q3 2025 vs Q3 2024 Net Sales by Segment (in millions) | Segment | Q3 2025 | Q3 2024 | % Change | | :--- | :--- | :--- | :--- | | Malibu | $102.2 | $60.2 | +69.8% | | Saltwater Fishing | $71.9 | $81.2 | -11.5% | | Cobalt | $54.6 | $62.0 | -12.0% | | **Total** | **$228.7** | **$203.4** | **+12.4%** | Nine Months 2025 vs 2024 Net Sales by Segment (in millions) | Segment | Nine Months 2025 | Nine Months 2024 | % Change | | :--- | :--- | :--- | :--- | | Malibu | $232.4 | $241.6 | -3.8% | | Saltwater Fishing | $206.8 | $256.6 | -19.4% | | Cobalt | $161.4 | $172.2 | -6.3% | | **Total** | **$600.5** | **$670.3** | **-10.4%** | - Gross margin for the nine months ended March 31, 2025 **decreased 160 basis points to 18.5%** due to lower sales and fixed cost deleverage[146](index=146&type=chunk) - General and administrative expenses for the nine months **increased 34.5% to $73.6 million**, driven by legal settlements and related fees[147](index=147&type=chunk) [Non-GAAP Financial Measures](index=36&type=section&id=GAAP%20Reconciliation%20of%20Non-GAAP%20Financial%20Measures) The company provides reconciliations for Adjusted EBITDA and Adjusted Fully Distributed Net Income, showing mixed results compared to the prior year Adjusted EBITDA Reconciliation (in thousands) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net income (loss)** | $13,173 | $(67,759) | $10,447 | $(36,845) | | **Adjustments** | $15,150 | $92,168 | $44,660 | $123,172 | | **Adjusted EBITDA** | $28,323 | $24,409 | $55,107 | $86,327 | | **Adjusted EBITDA Margin** | 12.4% | 12.0% | 9.2% | 12.9% | Adjusted Fully Distributed Net Income per Share | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Adjusted Fully Distributed Net Income per Share** | $0.72 | $0.63 | $1.12 | $2.33 | [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) The company's primary cash sources are operations and its credit facility, with fiscal 2025 capital expenditures projected at $25.0 to $30.0 million - Primary uses of cash include working capital, capital investments, debt repayments, acquisitions, and stock repurchases[162](index=162&type=chunk) - Expected capital expenditures for fiscal year 2025 are between **$25.0 million and $30.0 million**[164](index=164&type=chunk) - As of March 31, 2025, **$39.9 million was available for repurchase** under the 2024 Repurchase Program, which runs through June 30, 2025[170](index=170&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes in its market risk from the disclosures in its most recent Annual Report on Form 10-K - There have been **no material changes in market risk** from those disclosed in the Company's Form 10-K for the year ended June 30, 2024[187](index=187&type=chunk) [Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls - Based on an evaluation, the CEO and CFO concluded that disclosure controls and procedures were **effective as of March 31, 2025**[189](index=189&type=chunk) - There were **no material changes in internal control** over financial reporting during the quarter ended March 31, 2025[190](index=190&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company details significant ongoing legal matters for which the potential costs or outcomes cannot currently be estimated - The company is involved in several lawsuits, the outcomes of which are **uncertain and for which no reserve has been established**[192](index=192&type=chunk) - Key legal matters are detailed in Note 15 and include insurance litigation, disputes with Tommy's Boats, a securities class action, and a customer class action[94](index=94&type=chunk)[96](index=96&type=chunk)[98](index=98&type=chunk)[100](index=100&type=chunk) [Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) The company reports no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K - There were **no material changes to the risk factors** discussed in the Annual Report on Form 10-K for the year ended June 30, 2024[193](index=193&type=chunk) [Unregistered Sales of Equity Securities and Issuer Purchases](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company repurchased 279,340 shares for $10.1 million during the quarter, with $39.9 million remaining under its repurchase program Share Repurchases for Quarter Ended March 31, 2025 | Period | Total Shares Purchased | Average Price Paid Per Share | Approx. Dollar Value Remaining Under Plan | | :--- | :--- | :--- | :--- | | Jan 2025 | 122,710 | $36.64 | $45,459,000 | | Feb 2025 | 118,077 | $36.20 | $41,142,000 | | Mar 2025 | 38,553 | $31.90 | $39,900,000 | | **Total** | **279,340** | **$35.94** | **$39,900,000** | - The 2024 Repurchase Program allows for the repurchase of up to **$50.0 million** of Class A Common Stock and LLC Units through June 30, 2025[195](index=195&type=chunk) [Defaults Upon Senior Securities](index=46&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - None[196](index=196&type=chunk) [Mine Safety Disclosures](index=46&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not Applicable[197](index=197&type=chunk) [Other Information](index=47&type=section&id=Item%205.%20Other%20Information) The company reported no other information required to be disclosed under this item - None[198](index=198&type=chunk) [Exhibits](index=48&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the report, including corporate governance documents and required CEO/CFO certifications - The report includes standard corporate governance documents and required CEO/CFO certifications as exhibits[199](index=199&type=chunk)

Financial Performance - Q3 net sales reached $228.7 million, a 12.4% increase year-over-year, driven by higher unit volumes in the Malibu segment[17] - Gross margin increased to 20.0%, up 20 basis points year-over-year, due to fixed cost leveraging and operational performance[17] - Adjusted EBITDA for Q3 was $28.323 million compared to $24.409 million in the same period last year[36] - Adjusted EBITDA margin was 12.4%[17] Fiscal Year 2025 Outlook - Consolidated net sales are projected to be down 3% to 5%[34] - Adjusted EBITDA margin is expected to be between 9% and 10%[34] Strategic Initiatives - The company generated $15 million in operating cash flow and repurchased $10 million of shares, demonstrating disciplined capital allocation[13] - The company is implementing vertical integration strategies at Cobalt, Pursuit, and Maverick Boat Group to drive margin expansion[23] - The company is actively mitigating tariff-related cost impacts in FY25 to balance cost structure and enhance supply chain agility[13]

Exhibit 99.1 Loudon, TN, May 8, 2025 - Malibu Boats, Inc. (Nasdaq: MBUU) today announced its financial results for the third quarter ended March 31, 2025. Third Quarter Fiscal 2025 Highlights Compared to Third Quarter Fiscal 2024: "Our team executed effectively in the third quarter, navigating ongoing market challenges by leveraging our strong brands, disciplined operational performance, and continued focus on dealer health," commented Steve Menneto, Chief Executive Officer of Malibu Boats, Inc. "While reta ...

Core Insights - Malibu Boats, Inc. reported financial results for the third quarter of fiscal 2025, showing a significant recovery from previous losses, with net income increasing to $13.2 million compared to a loss of $67.8 million in the same quarter of fiscal 2024 [3][15][30]. Financial Performance - Net sales for the third quarter increased by $25.2 million, or 12.4%, to $228.7 million compared to the same period last year [5][6]. - Gross profit rose by 13.4% to $45.7 million, with a gross profit margin of 20.0%, up from 19.8% [4][13]. - Adjusted EBITDA increased by 16.0% to $28.3 million, with an adjusted EBITDA margin of 12.4% [6][15]. - The company achieved a net income margin of 5.8%, a significant improvement from a net loss margin of (33.3)% in the prior year [15][35]. Segment Performance - The Malibu segment saw net sales increase by $42.0 million, or 69.8%, to $102.2 million, driven by higher unit volumes and favorable model mix [8][9]. - Conversely, the Saltwater Fishing segment experienced a decline in net sales by $9.4 million, or 11.5%, to $71.9 million, attributed to lower retail activity [9][10]. - The Cobalt segment also faced a decrease in net sales by $7.4 million, or 12.0%, to $54.6 million, primarily due to reduced wholesale shipments [10]. Guidance and Market Outlook - For the full fiscal year 2025, Malibu anticipates a net sales decline ranging from 3% to 5% year-over-year, with an adjusted EBITDA margin expected to range from 9% to 10% [16][18]. - The company is focused on aligning dealer inventory levels with retail demand amid ongoing market challenges [3][4]. Operational Insights - The company emphasized maintaining dealer health and managing production to align with retail demand, despite softer-than-expected retail trends [3][4]. - Malibu Boats is actively monitoring international trade policies and tariff rates, with no anticipated material impact on its cost structure for the remainder of the fiscal year [3][4].

Core Insights - The upcoming earnings report for Malibu Boats (MBUU) is projected to show quarterly earnings of $0.67 per share, reflecting a 6.4% increase year over year, with revenues expected to reach $223.38 million, a 9.8% increase compared to the previous year [1]. Earnings Projections - Over the last 30 days, the consensus EPS estimate has been revised downward by 4.2%, indicating a collective reassessment by analysts of their initial forecasts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies have shown a strong correlation between earnings estimate trends and short-term stock price movements [3]. Analyst Estimates - Analysts estimate that revenue from the Saltwater Fishing segment will be $84.15 million, representing a 3.6% year-over-year increase [5]. - The forecast for 'Unit Volume by Segment - Malibu' is 472, up from 452 in the same quarter last year, while 'Unit Volume by Segment - Cobalt' is expected to reach 491, compared to 436 a year ago [5]. - The 'Net Sales per Unit - Total' is projected at $166,199.50, an increase from $160,299 in the previous year, with total unit volume expected to be 1,346, up from 1,269 [6]. - The estimated 'Unit Volume by Segment - Saltwater Fishing' is 383, slightly up from 381 in the same quarter last year [7]. Stock Performance - Over the past month, shares of Malibu Boats have increased by 12.4%, outperforming the Zacks S&P 500 composite, which rose by 11.5% [7]. - Currently, Malibu Boats holds a Zacks Rank 3 (Hold), suggesting that its performance may align with the overall market in the near future [7].

Core Viewpoint - Malibu Boats, Inc. is set to release its third quarter fiscal 2025 financial results on May 8, 2025, before market opening, followed by a conference call with management to discuss the results [1]. Company Overview - Malibu Boats, Inc. is based in Loudon, Tennessee, and is a leading designer, manufacturer, and marketer of a diverse range of recreational powerboats, including performance sport, sterndrive, and outboard boats [3]. - The company holds a market leadership position in the performance sport boat category through its Malibu and Axis brands, and leads the 20' - 40' segment of the sterndrive boat category with its Cobalt brand [3]. - Malibu Boats is also a key player in the saltwater fishing boat market with brands such as Pursuit, Cobia, Pathfinder, Maverick, and Hewes [3]. - The company is recognized as an innovator in the powerboat industry, designing products that cater to a growing demographic of recreational boaters, fishermen, and water sports enthusiasts [3].

Core Viewpoint - The market anticipates Malibu Boats (MBUU) to report a year-over-year increase in earnings driven by higher revenues for the quarter ended March 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The consensus EPS estimate for Malibu Boats is $0.67 per share, reflecting a year-over-year increase of +6.4%, while revenues are projected at $223.9 million, up 10.1% from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 4.18%, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Malibu Boats is higher than the consensus estimate, resulting in a positive Earnings ESP of +10.04%, indicating a likelihood of beating the consensus EPS estimate [10][11]. Historical Performance - In the last reported quarter, Malibu Boats exceeded the expected earnings of $0.21 per share by delivering $0.31, resulting in a surprise of +47.62%. The company has beaten consensus EPS estimates three out of the last four quarters [12][13]. Investment Considerations - While a potential earnings beat is a positive indicator, other factors may influence stock performance, making it essential to consider the broader context beyond just earnings results [14][16].

Company Overview - MasterCraft Boat Holdings, Inc. (MCFT) shares increased by 13.9% to close at $16.75, following a notable trading volume and a previous loss of 14.8% over the past four weeks [1] - The surge in share price is linked to President Trump's announcement to suspend U.S. tariffs on most countries for 90 days, which has renewed investor optimism [1] Earnings Expectations - MasterCraft is expected to report quarterly earnings of $0.18 per share, reflecting a year-over-year decline of 51.4% [2] - Revenue projections stand at $75.37 million, down 21.3% compared to the same quarter last year [2] Stock Performance and Trends - The consensus EPS estimate for MasterCraft has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] - The stock currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [3] - In comparison, Malibu Boats (MBUU), a competitor in the same industry, saw a 12.6% increase in its stock price, closing at $28.35, but has returned -19.6% over the past month [3] Competitor Analysis - Malibu Boats has a revised consensus EPS estimate of $0.66, which is a 4.8% increase from the previous year, but has seen a change of -6.2% over the past month [4] - Malibu currently holds a Zacks Rank of 4 (Sell), indicating a less favorable outlook compared to MasterCraft [4]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Malibu Boats (MBUU) as a strong value stock based on its financial metrics and rankings [2][4][7] Group 1: Value Investing Strategy - Value investing focuses on identifying companies that are undervalued by the market using fundamental analysis and established metrics [2] - Zacks has developed a Style Scores system to identify stocks with specific traits, particularly in the "Value" category [3] Group 2: Malibu Boats (MBUU) Financial Metrics - MBUU holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential as a value stock [4] - The stock has a P/E ratio of 12.13, significantly lower than the industry average of 30.77, suggesting it is undervalued [4] - MBUU's P/S ratio is 1.02, which is comparable to the industry average of 1.03, indicating solid sales performance [5] - The P/CF ratio for MBUU is 18.89, which is attractive compared to the industry's average of 28.41, reflecting a strong cash outlook [6] - Over the past 52 weeks, MBUU's P/CF has ranged from 8.21 to 22.01, with a median of 11.37, further supporting its undervaluation [6] Group 3: Investment Outlook - The combination of MBUU's financial metrics and strong earnings outlook positions it as a compelling value stock at the moment [7]

Group 1 - Malibu Boats, Inc. reported fiscal Q2 results for late-2024, exceeding expectations with a smaller decline than anticipated, leading to an initial increase in stock price [1] - The company is focused on small cap investments, emphasizing the importance of understanding financial drivers and utilizing DCF model valuation to identify mispriced securities [1] Group 2 - The investment philosophy of the company encompasses a broad approach, not confined to traditional value, dividend, or growth investing, but rather assessing all prospects to determine risk-to-reward [1]