Financial Performance - Total revenues for the three months ended December 31, 2025, were $380,561,000, a slight increase of 0.2% compared to $375,814,000 for the same period in 2024[19] - New boat sales decreased to $233,265,000 from $247,997,000, reflecting a decline of approximately 5.0% year-over-year[19] - Pre-owned boat sales increased significantly to $70,415,000, up 24.0% from $56,798,000 in the prior year[19] - The net loss for the quarter was $7,711,000, an improvement from a net loss of $13,612,000 in the same quarter of 2024[20] - Basic net loss per share of Class A common stock was $0.47, compared to $0.81 in the prior year[19] - The company reported a comprehensive loss of $8,051,000 for the quarter, compared to a comprehensive loss of $6,380,000 in the same period last year[20] - For the three months ended December 31, 2025, OneWater Marine Inc. reported a net loss of $7,711,000 compared to a net loss of $13,612,000 for the same period in 2024, indicating a reduction in losses[25] - The company reported depreciation and amortization expenses of $4,990,000 for the three months ended December 31, 2025, down from $6,037,000 in 2024[25] - The company incurred a restructuring and impairment charge of $7,101,000 in the three months ended December 31, 2025, indicating significant operational adjustments[25] - The effective tax rate for the three months ended December 31, 2025, was 63.4%, significantly higher than the 27.9% rate for the same period in 2024[111] Assets and Liabilities - Total current assets increased to $782,301,000 as of December 31, 2025, up from $719,213,000 at the end of September 2025[17] - Total liabilities rose to $1,164,542,000, compared to $1,118,872,000 as of September 30, 2025[17] - Cash and cash equivalents decreased to $32,234,000 from $52,166,000 at the end of September 2025[17] - The company experienced a significant increase in accounts receivable, which rose to $12,086,000 for the three months ended December 31, 2025, compared to $16,357,000 in 2024[25] - Total accounts receivable as of December 31, 2025, was $39.6 million, down from $60.9 million as of September 30, 2025, reflecting a decrease of 34.9%[66] - Total inventories increased to $601.5 million as of December 31, 2025, compared to $539.8 million as of September 30, 2025, representing an increase of 11.4%[67] - The outstanding balance of the Inventory Financing Facility was $491.2 million as of December 31, 2025, an increase from $419.7 million as of September 30, 2025[71] - The A&R Credit Facility had a total debt outstanding of $404.5 million as of December 31, 2025, down from $415.9 million as of September 30, 2025[78] - The company recorded a liability of $37.5 million under the Tax Receivable Agreement as of December 31, 2025, representing anticipated future tax savings[117] Cash Flow and Financing - Net cash used in operating activities was $76,288,000 for the three months ended December 31, 2025, compared to $37,442,000 in the same period of 2024, reflecting increased operational expenditures[25] - The company had net borrowings from floor plan financing of $71,521,000 in the three months ended December 31, 2025, compared to $46,721,000 in 2024, indicating increased reliance on financing[25] - The company entered into an amendment to its credit agreement on November 17, 2025, which required principal repayments exceeding its cash position as of December 31, 2025[51] - The company completed the sale of its equity interests in Ocean Bio-Chem Holdings, Inc. on February 2, 2026, using the proceeds for a $50.0 million repayment on its credit facility[51] - The company has an outstanding balance of $291.2 million under its Inventory Financing Facility, with a potential interest expense increase of approximately $2.9 million for a 100 basis point change in interest rates[227] - The A&R Credit Facility has an outstanding balance of $203.2 million, with a similar potential interest expense increase of approximately $2.0 million for a 100 basis point change in interest rates[228] Operational Challenges - The company continues to face challenges related to supply chain issues and labor shortages, impacting operational performance and inventory management[14] - The company is exposed to foreign currency risk due to purchases from foreign manufacturers, which may impact competitive pricing and operating results[231] Equity and Compensation - The total unrecognized compensation expense related to outstanding equity awards as of December 31, 2025, was $14.4 million, expected to be recognized over a weighted-average period of 1.4 years[86] - The Company granted 384,472 performance-based restricted stock units during the three months ended December 31, 2025, with an estimated achievement of performance targets at 100%[83] - The Company recognized $2.0 million of compensation expense for the three months ended December 31, 2025, which included $0.5 million for performance-based units[85] - The Company has repurchased and retired 73,487 shares of Class A common stock for approximately $1.9 million, with $48.1 million remaining available for future purchases under the repurchase program[89] - The ESPP allows eligible employees to purchase shares at a discount, with a maximum of 659,897 additional shares available as of December 31, 2025[92] Segment Performance - Dealership segment revenues for Q4 2025 were $347.854 million, slightly up from $347.678 million in Q4 2024, with new boat sales decreasing by 5.7%[135] - Pre-owned boat sales increased by 24.1% from $56.798 million in Q4 2024 to $70.415 million in Q4 2025[135] - Distribution segment revenues rose by 16.5% from $28.136 million in Q4 2024 to $32.707 million in Q4 2025[137] - Total segment income for Q4 2025 was $3.603 million, compared to $1.907 million in Q4 2024, indicating a significant improvement[137] - The company reported a net loss before income tax of $21.091 million for Q4 2025, compared to a loss of $18.874 million in Q4 2024[137] Accounting and Compliance - The company is currently evaluating the impact of new accounting standards on its consolidated financial statements, including ASU 2023-07 and ASU 2023-09[56][57] - The company accounts for income taxes under the asset and liability method, recognizing deferred tax assets and liabilities based on differences between book value and tax bases[47] - The company has not recognized any uncertain tax positions, penalties, or interest as of December 31, 2025, indicating a stable tax position[116] - The company utilizes derivative financial instruments to manage interest rate risk, with changes in fair value reported as a component of accumulated other comprehensive income[52] - The fair value of derivative and hedging instruments was $1,368,000 as of December 31, 2025, compared to $1,448,000 as of September 30, 2025, showing a decrease of approximately 5.5%[103]

Core Viewpoint - The analyst previously held a bearish stance on OneWater Marine (ONEW) but has identified two factors that could prompt a more favorable outlook on the stock [1]. Group 1: Analyst Background - The analyst is the founder of Goulart's Restaurant Stocks, focusing on the U.S. restaurant industry, including various segments from quick-service to fine dining [2]. - The research firm applies advanced financial modeling and sector-specific KPIs to uncover hidden value in public equities, particularly in micro and small caps often overlooked by mainstream analysts [2]. - The analyst has a strong academic background with an MBA in Controllership and Accounting Forensics and a Bachelor's in Business Administration, along with specialized training in valuation and financial modeling [2].

Core Insights - BYD's vehicle sales experienced a significant decline of 30.1% in January compared to the same month last year, marking the fifth consecutive month of sales decrease [1] Company Summary - The decline in sales is attributed to external uncertainties and intense competition within the electric vehicle market [1]

Financial Data and Key Metrics Changes - Fiscal first quarter revenue was $381 million, a 1% increase from $376 million in the prior year [11] - Gross profit increased to $89 million from $84 million year-over-year, with gross profit margin expanding to 23.5%, an improvement of 110 basis points [12] - Net loss for the quarter totaled $8 million, or $0.47 per diluted share, compared to a net loss of $14 million or $0.81 per diluted share in the prior period [12][13] Business Line Data and Key Metrics Changes - New boat sales decreased by 6% compared to the prior year, while pre-owned boat sales increased by 24%, driven by higher unit sales and average unit price [11] - Service parts and other revenue grew by 10% compared to the prior year, indicating strength in the distribution segment and service operations [11] Market Data and Key Metrics Changes - Inventory across the industry is normalizing, with total inventory decreasing to $602 million from $637 million year-over-year [14] - The company expects same-store sales to be flat due to brand rationalization headwinds, despite anticipating to outperform the industry, which is expected to be flat to down low single digits year-over-year [15] Company Strategy and Development Direction - The company is focused on simplifying its business by selling certain distribution segment assets that are no longer core to its long-term strategy [6] - Strategic brand initiatives completed last year are expected to positively impact gross margins throughout the year [6] - The company aims to reduce leverage and enhance financial flexibility through the sale of distribution assets [7][15] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about maintaining fiscal year 2026 guidance ranges, expecting total sales between $1.83 billion and $1.93 billion [15] - The company anticipates that expanding profitability will be a top priority, with expectations for new boat margins to improve by 100 basis points over the year [9][15] - Management noted that the early boat show season has shown stable customer sentiment, with less price resistance observed [8] Other Important Information - The company recognized a $7 million impairment charge related to certain distribution assets classified as held for sale [12] - Total liquidity was approximately $46 million, including $32 million in cash and cash equivalents [14] Q&A Session Summary Question: What is the shift seen among buyers in the pre-owned market? - Management indicated that better availability of pre-owned boats is driving the performance, with more trades being taken in [18] Question: How does the company view year-end net leverage and inventory outlook? - Management expects leverage to decrease to almost 4x by the end of the September quarter and under 4x by year-end, with inventory being managed according to retail conditions [22] Question: What are the observations from the boat show season? - Management noted that the boat show season has been flat, but consumer enthusiasm remains strong, with better-than-expected margins [24][25] Question: Are there any impacts from recent storms on operations? - Management stated that there has been no significant impact from storms, as the affected areas do not have substantial representation for the company [40][41] Question: Is there evidence of the monthly payment buyer returning? - Management indicated that most customers finance their purchases, but the company primarily deals in the premium space, which is less affected by lower-end consumers [60][62]

Financial Data and Key Metrics Changes - Fiscal first quarter revenue was $381 million, a 1% increase from $376 million in the prior year [11] - Gross profit increased to $89 million from $84 million year-over-year, with gross profit margin expanding to 23.5%, an improvement of 110 basis points [12] - Net loss for the quarter was $8 million, or $0.47 per diluted share, compared to a net loss of $14 million, or $0.81 per diluted share in the prior period [12] Business Line Data and Key Metrics Changes - New boat sales decreased by 6% compared to the prior year, while pre-owned boat sales increased by 24%, driven by higher unit sales and average unit price [11] - Service parts and other revenue grew by 10% compared to the prior year, indicating strength in the distribution segment and service operations [11] Market Data and Key Metrics Changes - Inventory decreased to $602 million as of December 31, 2025, from $637 million a year earlier, reflecting disciplined inventory optimization [14] - Total liquidity was approximately $46 million, including $32 million in cash and cash equivalents [14] Company Strategy and Development Direction - The company is focused on simplifying its business and reallocating capital to areas with the strongest strategic fit, including selling certain distribution segment assets [6][7] - The strategic brand initiatives completed last year are expected to enhance gross margins and profitability [6] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic, maintaining fiscal year 2026 guidance ranges despite a softer industry outlook [15] - The company anticipates total sales between $1.83 billion and $1.93 billion, with adjusted EBITDA expected to range from $65 million to $85 million [16] Other Important Information - The company recognized a $7 million impairment charge related to certain distribution assets classified as held for sale [12] - The company expects proceeds from the asset sale to enhance financial flexibility and support capital allocation priorities [7] Q&A Session Summary Question: What is the shift seen in the pre-owned market? - Management indicated that better availability of pre-owned boats is driving the performance, with more trades being taken in [18] Question: How does the company view year-end net leverage and inventory? - Management expects leverage to decrease to almost 4x by the end of the fiscal year, with inventory being managed according to retail conditions [22] Question: What is the outlook for the boat show season? - Management noted that the boat show season has been flat, but consumer enthusiasm remains strong, with better-than-expected margins [24] Question: Are there any impacts from recent storms on operations? - Management stated that they do not expect significant impacts from storms, as the affected areas are not major markets for the company [41] Question: Is there evidence of the monthly payment buyer returning? - Management indicated that while many customers finance their purchases, they do not see a significant return of lower-end, price-sensitive consumers [60]

Financial Data and Key Metrics Changes - Fiscal first quarter revenue was $381 million, a 1% increase from $376 million in the prior year period [11] - Gross profit increased to $89 million from $84 million year-over-year, with gross profit margin expanding to 23.5%, an improvement of 110 basis points [12] - Net loss for the quarter was $8 million, or $0.47 per diluted share, compared to a net loss of $14 million, or $0.81 per diluted share in the prior period [12][13] - Adjusted EBITDA increased to $4 million from $2 million in the prior year [13] Business Line Data and Key Metrics Changes - New boat sales decreased by 6% compared to the prior year, while pre-owned boat sales increased by 24%, driven by higher unit sales and average unit price [11] - Service parts and other revenue grew by 10% compared to the prior year, indicating strength in the distribution segment and service operations [11] Market Data and Key Metrics Changes - The company noted that inventory across the industry is normalizing, with a healthy mix of new boats in their premium portfolio [8] - The early boat show season showed flat to slightly down performance, but consumer enthusiasm remained strong [25] Company Strategy and Development Direction - The company is focused on portfolio optimization, including the sale of certain distribution segment assets that are no longer core to its long-term strategy [5] - The strategic brand initiatives completed last year are expected to yield long-term benefits, with a focus on driving profitability and reducing balance sheet leverage [6][16] Management Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about maintaining fiscal year 2026 guidance, expecting total sales in the range of $1.83 billion to $1.93 billion [15] - The company anticipates same-store sales to be impacted by brand rationalization headwinds, resulting in flat same-store sales overall [15] Other Important Information - The company recognized a $7 million impairment charge related to certain distribution assets classified as held for sale [12] - Total inventory decreased to $602 million as of December 31, 2025, compared to $637 million a year earlier [14] Q&A Session Summary Question: What is the shift seen in the pre-owned market? - Management indicated that better availability of pre-owned boats is due to increased trade-ins, as consumers are now able to source new boats more quickly [18] Question: How does the company view year-end net leverage and inventory? - Management expects leverage to decrease to almost 4x by the end of the March quarter and under 4x by year-end, with inventory being well-managed [21][22] Question: What is the outlook for the boat show season? - Management noted that the boat show season has been flat, but consumer enthusiasm remains, with better-than-expected margins [24] Question: Are there any impacts from recent storms on operations? - Management stated that they have not felt any significant impact from storms, as the affected areas do not have substantial representation for the company [40] Question: Is there evidence of the monthly payment buyer returning? - Management indicated that while many customers finance their purchases, they do not primarily cater to the lower-end consumer who is more price-sensitive [61]

分组1 - OneWater Marine reported a quarterly loss of $0.04 per share, significantly better than the Zacks Consensus Estimate of a loss of $0.39, and an improvement from a loss of $0.54 per share a year ago, resulting in an earnings surprise of +89.74% [1] - The company posted revenues of $380.56 million for the quarter ended December 2025, which missed the Zacks Consensus Estimate by 3.51%, but showed an increase from year-ago revenues of $375.81 million [2] - OneWater Marine shares have increased by approximately 22.2% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.27 on revenues of $509.3 million, and for the current fiscal year, it is $0.72 on revenues of $1.89 billion [7] - The Leisure and Recreation Products industry, to which OneWater Marine belongs, is currently ranked in the top 40% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Revenue Performance - Revenue for fiscal first quarter 2026 was $380.6 million, an increase of 1.3% compared to $375.8 million in fiscal first quarter 2025[4] - New boat revenue decreased by 5.9% to $233.3 million, while pre-owned boat revenue increased by 24.0% to $70.4 million[4] - The company expects total revenue for fiscal full-year 2026 to be in the range of $1.83 billion to $1.93 billion[10] Profitability - Gross profit totaled $89.4 million, up $5.3 million from $84.1 million, with a gross profit margin of 23.5%, an increase of 110 basis points year-over-year[5] - Net loss for fiscal first quarter 2026 was $(7.7) million, compared to a net loss of $(13.6) million in the same period last year[7] - Adjusted EBITDA increased 88.9% to $3.6 million compared to $1.9 million for fiscal first quarter 2025[8] - Adjusted EBITDA for the trailing twelve months ended December 31, 2025, was $71.808 million, reflecting an increase from $1.907 million in the previous year[20] - Adjusted Net Income (Loss) attributable to OneWater Marine Inc. is calculated by excluding transaction costs and other unusual expenses, providing a clearer view of operational performance[28] Inventory and Debt Management - Total inventory as of December 31, 2025, decreased to $601.5 million from $636.7 million on December 31, 2024, reflecting disciplined inventory management[9] - As of December 31, 2025, total long-term debt was $399.4 million, with adjusted long-term net debt at 5.1 times trailing twelve-month Adjusted EBITDA[9] - Long-term debt, including the current portion, stood at $399.351 million, with adjusted long-term net debt calculated at $367.117 million after accounting for cash[20] - The pro forma adjusted net debt leverage ratio was reported at 5.1x, indicating the company's financial leverage position[20] Strategic Initiatives - The company plans to divest certain Distribution segment assets, with assets held for sale totaling $52.8 million at quarter-end[8] - OneWater Marine operates 95 retail locations and 8 distribution centers across 18 states, positioning itself as a leading premium marine retailer in the U.S.[21] - The company emphasizes diversified revenue streams, including sales of new and pre-owned boats, finance and insurance products, and maintenance services[21] Market Conditions and Risks - Same-store sales are used to assess organic growth in the Dealership segment, excluding new and acquired stores until they reach their thirteenth month of operations[31] - The company faces risks including changes in demand, supply chain challenges, and geopolitical factors that could impact financial performance[23] - Forward-looking statements indicate management's expectations regarding future revenue and growth, though these are subject to uncertainties and risks[22]

Group 1 - The article discusses the expertise of a research firm focused on the U.S. restaurant industry, covering various segments from quick-service to fine dining [1] - The firm employs advanced financial modeling and sector-specific KPIs to identify hidden value in public equities, particularly in micro and small-cap companies [1] - The research has been featured on multiple financial platforms, indicating a broad recognition of the firm's insights and analysis [1] Group 2 - The analyst has a strong academic background with an MBA in Controllership and Accounting Forensics, and a Bachelor's in Business Administration, enhancing the credibility of the research [1] - Specialized training in valuation, financial modeling, and restaurant operations contributes to the depth of analysis provided by the firm [1] - The analyst's previous experience as a franchise partner for a regional ice cream shop adds practical industry knowledge to the research efforts [1]

Business Operations - As of September 30, 2025, OneWater Marine Inc. operates 95 dealerships across 17 states, representing approximately 92% of total revenues for the fiscal year 2025[24]. - The company has completed 35 acquisitions since its formation in 2014, expanding its dealership footprint significantly[27][31]. - The Distribution segment, which includes 9 distribution centers, accounted for approximately 8% of total revenues in fiscal year 2025[25]. - The company operates 95 dealerships across 17 states as of September 30, 2025[60]. - The company has relationships with over 35 manufacturers covering more than 50 brands, with top ten brands representing approximately 41% of total sales volume for fiscal year 2025[70]. - The company has acquired 83 additional dealerships and 12 warehouses/distribution centers through 35 acquisitions since 2014, indicating a strong growth strategy[155]. - The company aims to enhance revenue by increasing distribution, repair and maintenance services, parts and accessories, and financing and insurance businesses, which are higher margin areas[153]. Financial Performance - In fiscal year 2025, OneWater sold over 9,500 new and pre-owned boats, with new boat sales accounting for approximately $1,158.2 million or 61.9% of consolidated revenue[24][37]. - Non-boat sales contributed approximately 18.7% of revenue and 41.7% of gross profit in fiscal year 2025, indicating a diversification strategy[26]. - Revenue from fishing boats comprised 37% of new boat revenue for fiscal year 2025, highlighting a strong market presence in this segment[39]. - Revenue from yachts accounted for 27% of new boat revenue for fiscal year 2025[43]. - Revenue from service, parts, and other generated approximately $295.3 million, representing 15.8% of total revenue for fiscal year 2025[49]. - Fee income from finance and insurance products was approximately $55.0 million, or 2.9% of total revenue during fiscal year 2025[48]. - The inventory turnover ratio was 2.6x for fiscal year 2025, compared to 2.2x for fiscal year 2024[75]. - Approximately 80% of the company's revenue during fiscal years 2025, 2024, and 2023 was generated from the Southeast and Gulf Coast regions[127]. - Sales of new boats from the top ten brands represented approximately 40.8%, 41.7%, and 39.4% of total revenues for the fiscal years ended September 30, 2025, 2024, and 2023, respectively[137]. - Malibu Boats, Inc. accounted for 12.2%, 13.1%, and 13.9% of total revenues for the fiscal years ended September 30, 2025, 2024, and 2023, respectively[137]. Market and Industry Trends - Consumer spending on recreational boating in the U.S. reached $55.6 billion in 2024, with new powerboat sales contributing $15.5 billion, reflecting a 10% average annual growth rate since 2012[28][34]. - The boat dealership market is highly fragmented, with OneWater comprising less than 4% of total industry sales, indicating significant growth potential[29]. - The recreational boat industry faces intense competition, particularly from local marine retailers and larger operators, impacting customer acquisition and sales[149]. - The recreational boat industry is affected by changing consumer attitudes towards ownership, with younger consumers preferring sharing options over purchasing[148]. Strategic Initiatives - The company aims to leverage its scale for organic growth, focusing on same-store sales growth and expanding its online presence for boat sales and related products[30]. - OneWater's acquisition strategy targets family-owned businesses in a fragmented market, enhancing profitability through operational improvements[31]. - The company is focused on expanding its market presence and enhancing operational efficiency through experienced leadership[111][112][114]. - The company aims to enhance its online presence and sales through digital platforms, including online boat sales and finance products[65]. Risks and Challenges - The company faces intense competition in the marine retail industry, competing with local retailers and larger operators, as well as online merchants[95]. - Inflationary pressures on labor costs and raw materials could adversely impact profitability and operational expenses[129]. - Material increases in interest rates could negatively impact customers' ability or desire to purchase products, affecting profitability and margins[131]. - Tariffs on boats manufactured in Europe or parts sourced from Asia could materially increase costs or render specific product lines less competitive in the U.S. market[135]. - The company may face challenges in maintaining dealer agreements, which are crucial for product availability and competitive positioning[141]. - The integration of acquired businesses may require significant management resources and could impact profitability if not executed effectively[156]. - The company anticipates fluctuations in operating results due to the size and timing of future acquisitions, which may affect stock market performance[157]. - The company is exposed to international risks due to sales of products from foreign manufacturers, which could be affected by changes in trade policies[188]. - The company’s online marketplaces face risks such as cybersecurity threats and technical failures, which could disrupt sales and growth prospects[191]. Human Resources and Management - The company has 2,231 employees as of September 30, 2025, with 1,973 in location-level operations and 258 in corporate administration and management[101]. - The company has developed a robust training curriculum for employees, focusing on proprietary technology and retail strategies to enhance customer experience[102]. - The company maintains a performance-based compensation philosophy, which may lead to significant pay variations among employees based on individual and area performance[103]. - The company is focused on recruiting and retaining top talent, with a philosophy of paying competitive wages to reduce turnover and motivate employees[104]. Compliance and Regulations - The company is subject to numerous environmental and occupational health and safety laws, which may impose additional costs and operational restrictions[84]. - The company is required to estimate the fair value of contingent consideration liabilities related to acquisitions, which could materially affect financial results based on future performance[198]. - The company is subject to stringent federal, state, and local laws and regulations that could impose significant liabilities and affect operations[209]. - The company’s operations are subject to environmental regulations that could result in liabilities for past contamination by third parties[214]. - Future compliance with environmental regulations may lead to additional material expenditures for the company, its suppliers, or customers[219].