Core Insights - Generative AI is viewed as a transformative technology by Amazon's CEO Andy Jassy, indicating its potential to significantly enhance customer experiences across the company [1] - Elon Musk predicts that by 2040, the humanoid robot market could be valued at $250 trillion, driven by an ecosystem of AI innovators [2][3] - Major firms like PwC and McKinsey recognize the multi-trillion-dollar potential of AI, suggesting a broad consensus on its economic impact [3] Company and Industry Analysis - A breakthrough in AI technology is believed to be redefining work, learning, and creativity, attracting significant interest from hedge funds and top investors [4] - There is speculation about an under-owned company that may play a crucial role in the AI revolution, with its technology posing a threat to competitors [4][6] - Prominent figures in technology and investment, including Bill Gates and Warren Buffett, are positioning themselves around AI, highlighting its potential to improve various sectors such as healthcare and education [8]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Data and Key Metrics Changes - Fiscal fourth quarter 2025 revenue increased 22% to $460 million compared to $378 million in the prior year period [10] - Full-year 2025 total revenue increased 6% to $1.9 billion, driven by a slight increase in units and higher average selling prices [12] - Net loss for fiscal year 2025 was $116 million, or $7.22 per diluted share, compared to a net loss of $6.39 per diluted share in the prior year [15] - Adjusted EBITDA for fiscal year 2025 was $70 million, with adjusted diluted earnings per share of $0.44 [15] Business Line Data and Key Metrics Changes - New boat sales in Q4 increased 27% to $275 million, while pre-owned sales increased 25% to $91 million [10] - Same-store sales for the year grew by 6%, outperforming the industry which saw a decline of over 13% [12] - Revenue from service parts and other sales for the quarter increased 7% to $81 million [10] Market Data and Key Metrics Changes - The company experienced a 6% same-store sales growth for the year, outperforming broader industry trends [4] - Inventory levels decreased to $540 million from $591 million in the prior year, reflecting strategic inventory positioning [15] Company Strategy and Development Direction - The company completed a strategic exit from discontinued brands to focus on high-performing brands, which is expected to improve margins in the long term [5] - The company aims to maintain a disciplined approach to inventory and cost management to adapt to market conditions [17] - The outlook for 2026 anticipates flat same-store sales, with total sales expected to range from $1.83 billion to $1.93 billion [16] Management's Comments on Operating Environment and Future Outlook - Management noted that industry conditions remain challenging, with retail demand normalizing from pandemic highs and increased promotional activity [4] - There are positive signs of improved channel inventories and normalizing OEM production, which could support demand and growth [6] - Management expressed cautious optimism for 2026, expecting demand to fluctuate with traditional seasonal cycles [16] Other Important Information - The company exited the year with the cleanest inventory levels seen in years, providing a competitive advantage [5] - The company has a total liquidity of over $67 million, including cash and credit facilities [15] Q&A Session Summary Question: Can you quantify the change in inventory year over year? - The company reported a decrease of approximately 8.5%, or $50 million, year over year [19] Question: What is the right assumption for inventory for fiscal 2026? - Inventory is expected to increase modestly due to price increases, with a headwind of around 5% from exiting brands [20] Question: What is the outlook for interest rate expenses in 2026? - Interest rate expenses are expected to be flattish to slightly up for floor plan interest, while term interest should decrease [22] Question: Have consumer rates started to come down in a meaningful way? - Consumer rates have started to decrease, contributing to positive sales momentum [26] Question: How much were sales up at the Fort Lauderdale boat show? - Sales were nearly up 20% compared to last year at the Fort Lauderdale boat show [29] Question: How do you see the promotional environment playing out in fiscal 2026? - The promotional environment is expected to remain stable until manufacturers increase production [35] Question: What is the current dynamic regarding trade-ins for pre-owned boats? - There has been an increase in trade-ins as consumers are opting to sell through dealerships rather than independently [40] Question: What is the company's approach to M&A in the current environment? - The company is focused on being disciplined regarding debt and is taking a methodical approach to potential M&A opportunities [42]

分组1 - OneWater Marine reported break-even quarterly earnings per share, compared to a loss of $0.36 per share a year ago, representing an earnings surprise of -100.00% [1] - The company posted revenues of $460.14 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 13.19%, and this is an increase from year-ago revenues of $377.86 million [2] - Over the last four quarters, OneWater Marine has surpassed consensus revenue estimates three times [2] 分组2 - The stock has underperformed the market, losing about 10.8% since the beginning of the year, while the S&P 500 gained 16.5% [3] - The current consensus EPS estimate for the coming quarter is -$0.28 on revenues of $399.5 million, and for the current fiscal year, it is $0.99 on revenues of $1.89 billion [7] - The Zacks Industry Rank for Leisure and Recreation Products is currently in the top 35% of over 250 Zacks industries, indicating a favorable industry outlook [8]

Revenue and Profitability - Revenue for fiscal fourth quarter 2025 was $460.1 million, an increase of 21.8% compared to $377.9 million in fiscal fourth quarter 2024[4] - New boat revenue increased 26.7% to $274.5 million, while pre-owned boat revenue increased 24.6% to $91.4 million[4] - Gross profit for fiscal fourth quarter 2025 totaled $103.9 million, up $13.2 million from $90.7 million in the prior year, with a gross profit margin of 22.6%[5] - Total revenues for fiscal year 2025 increased 5.6% to $1.87 billion from $1.77 billion in fiscal year 2024[9] - Adjusted diluted earnings per share for fiscal year 2025 was $0.44, down from $0.98 in 2024[12] - Adjusted EBITDA for fiscal year 2025 decreased 15.0% to $70.1 million compared to $82.5 million in fiscal year 2024[12] Losses and Impairments - The company reported a net loss of $(116.2) million for fiscal year 2025, compared to a net loss of $(6.2) million in fiscal year 2024, primarily due to a $145.8 million non-cash impairment charge[12] - For the three months ended September 30, 2025, OneWater Marine Inc. reported a net loss of $112.96 million compared to a net loss of $10.41 million for the same period in 2024[25] - Adjusted net income attributable to OneWater Marine Inc. for the twelve months ended September 30, 2025, was $7.09 million, down from $14.58 million in 2024[25] - The diluted earnings per share for Class A common stock was $(7.22) for the twelve months ended September 30, 2025, compared to $(0.39) for the same period in 2024[25] Expenses and Costs - Selling, general and administrative expenses for fiscal fourth quarter 2025 were $84.3 million, or 18.3% of revenue, down from 21.0% in the prior year[7] - The company incurred restructuring and impairment costs of $149.68 million for the twelve months ended September 30, 2025, compared to $15.32 million in 2024, reflecting a significant increase[25] - Stock-based compensation expenses rose to $10.50 million for the twelve months ended September 30, 2025, compared to $8.44 million in 2024, indicating a 24.5% increase[25] - The company reported transaction costs of $1.55 million for the twelve months ended September 30, 2025, slightly up from $1.53 million in 2024[25] Inventory and Assets - As of September 30, 2025, total inventory decreased to $539.8 million from $590.8 million a year earlier, reflecting disciplined inventory management[12] - Total current assets reached $719.21 million, up from $637.36 million, indicating a growth of approximately 12.85%[19] - Accounts receivable net increased to $608.85 million, up from $326.69 million, marking an increase of approximately 86.14%[19] - Inventory levels were reported at $539.79 million, a rise from $359.90 million, reflecting a growth of about 50.00%[19] Liabilities and Equity - Total liabilities were reported at $1,118.87 million, a decrease from $1,199.23 million, showing a reduction of about 6.69%[19] - Total equity attributable to shareholders was $284.95 million, compared to $336.81 million, representing a decline of approximately 15.38%[19] - Current liabilities totaled $594.95 million, compared to $586.07 million, indicating a slight increase of about 1.51%[19] - Long-term debt net was reported at $370.53 million, a decrease from $354.14 million, indicating a reduction of approximately 4.43%[19] Future Outlook - The company anticipates total revenue for fiscal year 2026 to be in the range of $1.83 billion to $1.93 billion, with adjusted EBITDA expected between $65 million and $85 million[13] - The pro forma adjusted net debt leverage ratio increased to 5.1x for the twelve months ended September 30, 2025, compared to 4.9x in 2024[25] Company Operations - OneWater Marine operates 95 retail locations and 9 distribution centers across 19 states, positioning itself as one of the largest marine retailers in the U.S.[26] - OneWater Marine's financial results are subject to change and should not be viewed as a substitute for complete audited financial statements[27]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Group 1 - The stock has experienced minimal movement, with only about 5% gains, while shareholders faced over 50% dilution [1] - The research firm focuses on the U.S. restaurant industry, covering various segments from quick-service to fine dining [1] - The analyst employs advanced financial modeling and sector-specific KPIs to identify hidden value in public equities, particularly in micro and small caps [1] Group 2 - The analyst has a background in finance and business management, holding an MBA in Controllership and Accounting Forensics [1] - The research has been featured on multiple platforms, indicating a broad reach and recognition in the industry [1]

Core Insights - OneWater Marine reported Q3 FY2025 GAAP revenue of $552.9 million, exceeding analyst expectations and reflecting a 1.9% year-over-year increase [1][5] - Adjusted earnings per share (non-GAAP) were $0.79, significantly below the consensus estimate of $1.12 and down from $1.05 in Q3 FY2024, indicating margin pressures and lower profits [1][2] - The company demonstrated resilience in sales and market share gains despite broader industry weakness, outperforming the industry with a 2% increase in same-store sales compared to an industry decline of over 10% [1][5] Financial Performance - Revenue for Q3 FY2025 was $552.9 million, surpassing the estimate of $532.0 million, with a year-over-year increase from $542.4 million [2] - Adjusted EBITDA fell to $32.8 million, down 16.3% from $39.2 million in Q3 FY2024 [2] - Gross profit margin decreased to 23.3%, down 1.1 percentage points from the previous year, reflecting ongoing aggressive promotions and a shift in the mix of boats sold [2][7] Business Overview - OneWater Marine operates nearly 100 retail dealerships and multiple distribution centers across the U.S., focusing on the sale of new and pre-owned boats, marine parts, service, and insurance products [3] - The company partners with top boat manufacturers and targets premium and high-demand brands, enhancing its market position [3][4] Growth Strategy - The growth strategy includes expanding store footprint through acquisitions and diversifying revenue sources, with a focus on managing inventory levels and maintaining competitive pricing [4] - OneWater aims to streamline its product portfolio by exiting low-performing brands and focusing on higher-quality offerings, which is expected to improve margins in future quarters [9][11] Inventory and Cost Management - Inventory was reduced by 13.6% year-over-year to $517.1 million, indicating disciplined inventory management as part of a broader cleanup strategy [9] - Operating expenses increased to $92.1 million, or 16.7% of total revenue, driven by efforts to boost same-store sales and inflationary costs [10] Future Outlook - Management updated FY2025 guidance, projecting full-year revenue between $1.80 billion and $1.85 billion, with adjusted EBITDA forecasted at $65 million to $80 million [12] - Profitability expectations were lowered due to ongoing price competition and margin pressures, with adjusted diluted EPS now expected to fall between $0.50 and $0.75 [12]

[Cautionary Statement Regarding Forward-Looking Statements](index=4&type=section&id=CAUTIONARY%20STATEMENT%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section outlines important disclaimers and risks associated with forward-looking statements made in the report PART I – FINANCIAL INFORMATION [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements and notes for OneWater Marine Inc. for the interim periods ended June 30, 2025 [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20as%20of%20June%2030%2C%202025%20and%20September%2030%2C%202024) Presents the company's financial position, including assets, liabilities, and equity, as of June 30, 2025, and September 30, 2024 Condensed Consolidated Balance Sheets (June 30, 2025 vs. September 30, 2024) | Metric (in thousands) | June 30, 2025 | September 30, 2024 | | :-------------------- | :------------ | :----------------- | | Total Assets | $1,540,429 | $1,589,989 | | Total Liabilities | $1,147,200 | $1,199,236 | | Total Stockholders' Equity | $393,229 | $390,753 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20for%20the%20Three%20and%20Nine%20Months%20Ended%20June%2030%2C%202025%20and%20June%2030%2C%202024) Details the company's revenues, expenses, and net income for the three and nine months ended June 30, 2025, and 2024 Condensed Consolidated Statements of Operations (Three Months Ended June 30) | Metric (in thousands) | June 30, 2025 | June 30, 2024 | | :-------------------- | :------------ | :------------ | | Total Revenues | $552,864 | $542,441 | | Income from Operations | $30,379 | $39,999 | | Net Income (Loss) | $10,715 | $16,714 | | Net Earnings Per Share (Diluted) | $0.65 | $0.99 | Condensed Consolidated Statements of Operations (Nine Months Ended June 30) | Metric (in thousands) | June 30, 2025 | June 30, 2024 | | :-------------------- | :------------ | :------------ | | Total Revenues | $1,412,199 | $1,394,775 |\ | Income from Operations | $44,677 | $60,325 | | Net Income (Loss) | $(3,272) | $4,235 | | Net Earnings Per Share (Diluted) | $(0.10) | $0.24 | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)%20for%20the%20Three%20and%20Nine%20Months%20Ended%20June%2030%2C%202025%20and%20June%2030%2C%202024) Reports the company's comprehensive income or loss, including other comprehensive income, for the specified interim periods [Condensed Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity%20for%20the%20Three%20and%20Nine%20Months%20Ended%20June%2030%2C%202025%20and%20June%2030%2C%202024) Outlines changes in stockholders' equity for the three and nine months ended June 30, 2025, and 2024 [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20Nine%20Months%20Ended%20June%2030%2C%202025%20and%20June%2030%2C%202024) Summarizes cash inflows and outflows from operating, investing, and financing activities for the nine months ended June 30, 2025, and 2024 Condensed Consolidated Statements of Cash Flows (Nine Months Ended June 30) | Metric (in thousands) | June 30, 2025 | June 30, 2024 | | :-------------------- | :------------ | :------------ |\ | Net cash provided by operating activities | $81,820 | $7,507 | | Net cash (used in) provided by investing activities | $(8,741) | $17,576 | | Net cash used in financing activities | $(18,462) | $(66,464) | | Net change in cash and restricted cash | $54,569 | $(41,380) | [Notes to the Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations and disclosures supporting the condensed consolidated financial statements [1. Description of Company and Basis of Presentation](index=13&type=section&id=1.%20Description%20of%20Company%20and%20Basis%20of%20Presentation) Describes the company's business operations and the basis for preparing the condensed consolidated financial statements [2. Summary of Significant Accounting Policies](index=15&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) Outlines the key accounting principles and methods used in preparing the financial statements [3. New Accounting Pronouncements](index=21&type=section&id=3.%20New%20Accounting%20Pronouncements) Discusses recently issued accounting standards and their potential impact on the company's financial reporting [4. Accounts Receivable](index=21&type=section&id=4.%20Accounts%20Receivable) Details the composition and accounting treatment of the company's accounts receivable [5. Inventories](index=21&type=section&id=5.%20Inventories) Provides information on the company's inventory valuation methods and balances [6. Goodwill and Intangible Assets](index=23&type=section&id=6.%20Goodwill%20and%20Intangible%20Assets) Explains the accounting for goodwill and other intangible assets, including impairment considerations [7. Notes Payable — Floor Plan](index=23&type=section&id=7.%20Notes%20Payable%20%E2%80%94%20Floor%20Plan) Details the company's floor plan financing arrangements for inventory purchases [8. Long-term Debt and Line of Credit](index=25&type=section&id=8.%20Long-term%20Debt%20and%20Line%20of%20Credit) Describes the company's long-term debt obligations and available credit facilities [9. Derivative and Hedging Instruments](index=27&type=section&id=9.%20Derivative%20and%20Hedging%20Instruments) Explains the company's use of derivative instruments for hedging purposes and their accounting treatment [10. Stockholders' Equity](index=28&type=section&id=10.%20Stockholders'%20Equity) Provides further details on the components of stockholders' equity and related transactions [11. Fair Value Measurements](index=32&type=section&id=11.%20Fair%20Value%20Measurements) Discusses the fair value hierarchy and methods used for measuring financial instruments [12. Restructuring and Impairment](index=36&type=section&id=12.%20Restructuring%20and%20Impairment) Details any restructuring activities or impairment charges recognized by the company [13. Income Taxes](index=36&type=section&id=13.%20Income%20Taxes) Provides information on the company's income tax provisions, deferred taxes, and effective tax rates [14. Commitments and Contingencies](index=38&type=section&id=14.%20Commitments%20and%20Contingencies) Outlines the company's contractual commitments and potential contingent liabilities [15. Leases](index=40&type=section&id=15.%20Leases) Details the company's lease arrangements and their impact on the financial statements [16. Related Party Transactions](index=40&type=section&id=16.%20Related%20Party%20Transactions) Discloses transactions between the company and its related parties [17. Segment Information](index=40&type=section&id=17.%20Segment%20Information) Presents financial information disaggregated by the company's operating segments [18. Subsequent Events](index=43&type=section&id=18.%20Subsequent%20Events) Reports significant events that occurred after the balance sheet date but before the financial statements were issued [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition, operational results, and key performance drivers for the periods ended June 30, 2025, including non-GAAP measures and liquidity - OneWater Marine Inc. is one of the largest and fastest-growing marine retailers in the United States, operating 97 dealerships, 9 distribution centers/warehouses, and multiple online marketplaces as of June 30, 2025[144](index=144&type=chunk) - The company operates through two reportable segments: Dealerships (**93% of revenues**) and Distribution (**7% of revenues**)[146](index=146&type=chunk)[147](index=147&type=chunk) - Acquisitions are a key growth strategy, with 82 additional dealerships and 12 distribution centers/warehouses acquired since 2014. The company plans to continue strategic acquisitions[148](index=148&type=chunk)[150](index=150&type=chunk) - Non-boat sales (finance & insurance, service, parts & other) contributed **18.2% of revenue** but **42.1% of gross profit** for the three months ended June 30, 2025, highlighting their higher margin profile[157](index=157&type=chunk) [Overview](index=44&type=section&id=Overview) Provides a general introduction to the company's business and financial performance [Trends and Other Factors Impacting Our Performance](index=45&type=section&id=Trends%20and%20Other%20Factors%20Impacting%20Our%20Performance) Discusses key industry trends and external factors influencing the company's operational and financial results [Critical Accounting Estimates](index=47&type=section&id=Critical%20Accounting%20Estimates) Highlights the significant accounting judgments and estimates that require management's most difficult, subjective, or complex judgments [How We Evaluate Our Operations](index=47&type=section&id=How%20We%20Evaluate%20Our%20Operations) Explains the key metrics and methodologies management uses to assess the company's operational performance [Summary of Acquisitions](index=49&type=section&id=Summary%20of%20Acquisitions) Summarizes recent acquisition activities and their strategic rationale [Results of Operations](index=50&type=section&id=Results%20of%20Operations) Analyzes the company's financial performance for the reported periods, detailing revenue and expense drivers [Three Months Ended June 30, 2025, Compared to Three Months Ended June 30, 2024](index=50&type=section&id=Three%20Months%20Ended%20June%2030%2C%202025%2C%20Compared%20to%20Three%20Months%20Ended%20June%2030%2C%202024) Compares the company's financial results for the three months ended June 30, 2025, against the prior year period [Nine Months Ended June 30, 2025, Compared to Nine Months Ended June 30, 2024](index=55&type=section&id=Nine%20Months%20Ended%20June%2030%2C%202025%2C%20Compared%20to%20Nine%20Months%20Ended%20June%2030%2C%202024) Compares the company's financial results for the nine months ended June 30, 2025, against the prior year period [Comparison of Non-GAAP Financial Measures](index=61&type=section&id=Comparison%20of%20Non-GAAP%20Financial%20Measures) Reconciles and discusses non-GAAP financial measures used by management to evaluate performance [Adjusted EBITDA](index=61&type=section&id=Adjusted%20EBITDA) Presents the calculation and reconciliation of Adjusted EBITDA, a key non-GAAP performance metric [Adjusted Net Income (Loss) Attributable to OneWater Marine Inc. and Adjusted Diluted Earnings (Loss) Per Share](index=62&type=section&id=Adjusted%20Net%20Income%20(Loss)%20Attributable%20to%20OneWater%20Marine%20Inc.%20and%20Adjusted%20Diluted%20Earnings%20(Loss)%20Per%20Share) Details the calculation and reconciliation of adjusted net income and diluted earnings per share [Seasonality](index=66&type=section&id=Seasonality) Explains the seasonal patterns and their impact on the company's revenues and profitability [Liquidity and Capital Resources](index=66&type=section&id=Liquidity%20and%20Capital%20Resources) Analyzes the company's ability to generate and manage cash, including debt, credit facilities, and share repurchases [Overview](index=66&type=section&id=Overview) Provides a general overview of the company's liquidity position and capital structure [Cash Flows](index=66&type=section&id=Cash%20Flows) Analyzes the company's cash flow activities from operations, investing, and financing [Share Repurchase Program](index=68&type=section&id=Share%20Repurchase%20Program) Details the company's share repurchase activities and remaining authorization [Debt Agreements](index=68&type=section&id=Debt%20Agreements) Summarizes the terms and conditions of the company's various debt agreements [Notes Payable](index=70&type=section&id=Notes%20Payable) Provides specific information regarding the company's notes payable obligations [Tax Receivable Agreement](index=72&type=section&id=Tax%20Receivable%20Agreement) Explains the terms and financial implications of the company's tax receivable agreement [Recent Accounting Pronouncements](index=72&type=section&id=Recent%20Accounting%20Pronouncements) Discusses the impact of recently adopted or issued accounting standards on the company's financial reporting [Item 3. Quantitative and Qualitative Disclosure about Market Risk](index=72&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20about%20Market%20Risk) This section details the company's exposure to market risks, primarily interest rate and foreign currency risks, and mitigation strategies - The company is exposed to interest rate risk from its Inventory Financing Facility and A&R Credit Facility, with interest rates tied to SOFR and Term SOFR[259](index=259&type=chunk)[260](index=260&type=chunk) Interest Rate Sensitivity (as of June 30, 2025) | Facility | Uncovered Balance (in millions) | Impact of 100 bps change in interest expense (in millions) | | :---------------------- | :------------------------------ | :------------------------------------------------------- | | Inventory Financing Facility | $235.8 | ~$2.4 | | A&R Credit Facility | $222.7 | ~$2.2 | - To mitigate interest rate risk, the company has two interest rate swap agreements with a combined notional amount of **$400.0 million**, maturing in September 2027[261](index=261&type=chunk) [Interest Rate Risk](index=72&type=section&id=Interest%20Rate%20Risk) Analyzes the company's exposure to interest rate fluctuations and its hedging strategies [Foreign Currency Risk](index=72&type=section&id=Foreign%20Currency%20Risk) Discusses the company's exposure to foreign currency exchange rate fluctuations from international transactions [Item 4. Controls and Procedures](index=74&type=section&id=Item%204.%20Controls%20and%20Procedures) Management evaluated the effectiveness of disclosure controls and procedures, confirming their efficacy with no material changes in internal control - Disclosure controls and procedures were evaluated and deemed effective as of June 30, 2025[264](index=264&type=chunk) - No material changes in internal control over financial reporting occurred during the three months ended June 30, 2025[265](index=265&type=chunk) [Disclosure Controls and Procedures](index=74&type=section&id=Disclosure%20Controls%20and%20Procedures) Describes the company's controls designed to ensure timely and accurate disclosure of financial information [Changes in Internal Control Over Financial Reporting](index=74&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) Reports any material changes in the company's internal control over financial reporting during the period PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=75&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, which management believes will not materially adversely affect its financial position - Management assesses that pending litigation, disputes, or claims are not reasonably probable to have a material adverse effect on financial condition, results of operations, or cash flows as of June 30, 2025[268](index=268&type=chunk) [Item 1A. Risk Factors](index=75&type=section&id=Item%201A.%20Risk%20Factors) This section highlights new risks related to international trade policies, including tariffs and their potential impact on costs and supply chains - New risk factor identified: Risks associated with international trade policies, including tariffs and other restrictions[270](index=270&type=chunk) - Tariffs or governmental actions could increase procurement/manufacturing costs, delay deliveries, and limit inventory availability for both the Dealership and Distribution segments[271](index=271&type=chunk) - Uncertainty in U.S. trade policy may create pricing volatility or supply chain disruptions, potentially impacting gross margins and profitability[272](index=272&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=75&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details the company's share repurchase program, including authorization, shares repurchased, and remaining availability - Share repurchase program authorized for up to **$50 million** of Class A common stock[273](index=273&type=chunk) - No shares were repurchased during the three months ended June 30, 2025[273](index=273&type=chunk) - **$48.1 million** remains available under the share repurchase program as of June 30, 2025[273](index=273&type=chunk) [Item 3. Defaults Upon Senior Securities](index=75&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported [Item 4. Mine Safety Disclosures](index=77&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations [Item 5. Other Information](index=77&type=section&id=Item%205.%20Other%20Information) No other material information was reported under this item [Item 6. Exhibits](index=77&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including key agreements and certifications

Financial Data and Key Metrics Changes - Total revenue increased by 2% to $553 million in Q3 2025 from $542 million in Q3 2024 [4][13] - Gross profit declined to $129 million in Q3 2025 compared to $133 million in the prior year, primarily due to lower new boat volumes and a promotional environment [14] - Net income for Q3 totaled $11 million or $0.65 per diluted share, down from $17 million or $0.99 per diluted share in the prior year [14] - Adjusted earnings per diluted share decreased to $0.79 from $1.05 in the prior year [14] Business Line Data and Key Metrics Changes - New boat sales decreased by 2% to $326 million, while pre-owned boat sales increased by 18% to $126 million [13][10] - Revenue from service parts and other sales decreased by 2% to $83 million, driven by lower production from boat manufacturers [13] - Finance and Insurance revenue remained flat as a percentage of sales, maintaining healthy penetration rates [11] Market Data and Key Metrics Changes - Same store sales grew by 2% against an industry backdrop that saw declines in excess of 15% [4][13] - Total inventory decreased by 14% year over year, with a target to end the fiscal year with inventory down by 10% to 15% [6][15] Company Strategy and Development Direction - The company is focused on three key areas: maintaining healthy inventory of high-performing brands, executing disciplined cost management, and leveraging scale and operational expertise [7] - A brand rationalization strategy is in place to exit selected brands by the end of the year, allowing focus on the highest performing brands [7] - The company aims to reduce leverage as part of its capital allocation strategy [16] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding July's performance and the potential for a trend to continue, despite persistent macroeconomic uncertainty [18] - The company raised its full-year revenue outlook to a range of $1.8 billion to $1.85 billion, anticipating same store sales to be up in the low single digits [17] - Management noted that the premium customer segment remains resilient despite tariff uncertainties affecting consumer confidence [24] Other Important Information - Total liquidity as of June 30 was in excess of $85 million, including cash on hand and availability under credit facilities [15] - Total long-term debt as of June 30 was $419 million, resulting in a net leverage of 5.8 times trailing twelve months adjusted EBITDA [16] Q&A Session Summary Question: Changes in behavior regarding tariff and market correction - Management noted that during the quarter, there was more confusion regarding tariffs, but subsequent clarity has led to less concern among customers [21][22] Question: Growth in pre-owned boat sales - The 18% growth in pre-owned boat sales is attributed to more customers trading in their boats rather than a trade-down effect [25][26] Question: Trade-in and replacement ratios - Management clarified that trade-ins are primarily for upgrading to larger boats, indicating a healthy churn in the market [29][30]