Financial Data and Key Metrics Changes - Net sales for Q2 2026 were $188.6 million, a decrease of 5.8% compared to the previous year, with unit volume down 9.5% to 1,106 units [12][15] - Adjusted EBITDA decreased 52.5% to $8 million, with adjusted EBITDA margin dropping to 4.3% from 8.4% in the prior year [15][17] - GAAP net loss for the quarter was $2.5 million, compared to a net income of $2.4 million in the prior year [15] Business Line Data and Key Metrics Changes - Malibu and Axis brands accounted for approximately 46.4% of unit sales, while saltwater fishing represented 25.5% and Cobalt made up 28.1% [13] - Consolidated net sales per unit increased by 4.1% to $170,544 per unit, driven by favorable model mix in Cobalt and saltwater fishing segments [13][14] Market Data and Key Metrics Changes - The broader marine industry is experiencing a modest overhang on non-current inventory, but the company maintains a healthy inventory position for its model year 2026 boats [9][11] - The company expects the market to decline in the range of mid to high single digits for the fiscal year [17] Company Strategy and Development Direction - The company is focused on a "Build, Innovate, and Grow" framework, emphasizing customer-driven innovation and operational excellence [8][11] - Plans to debut new models at the Miami International Boat Show, showcasing differentiated products [7] - The company is expanding its marine components business and enhancing dealer partnerships to strengthen its market position [10] Management's Comments on Operating Environment and Future Outlook - Management noted a competitive retail environment but expressed optimism about customer response to new models and the success of promotional events [5][6] - The company is closely monitoring market conditions and is prepared to scale production if demand improves [18] Other Important Information - The company generated $8.4 million of free cash flow during Q2, with $4.4 million in capital expenditures [16] - A share repurchase program was expanded to $70 million, with $20.8 million completed during the quarter [16] Q&A Session Summary Question: Impact of higher boat show expenses on EBITDA margin - Management indicated that higher promotional costs related to year-end sales events contributed about 50 basis points of cost pressure for the quarter [22][23] Question: Inventory levels compared to the industry - Management stated that the industry is generally in a healthy position, with the company feeling good about its inventory levels [24] Question: MBI Acceptance program rollout and its impact - Early feedback from dealers was positive, indicating a higher take rate on financing options, although it is still early to determine overall trends [30] Question: Dealer sentiment and inventory management - Feedback from dealers has been mixed, with some positive trends observed at boat shows, leading to additional orders [35] Question: Outlook for labor costs - Management expects to see benefits from operational effectiveness and centralized sourcing efforts, which should help manage labor costs moving forward [39][41] Question: Competitive landscape in the ski and wake category - Management noted ongoing efforts to stimulate growth in the ski/wake segment, collaborating with industry peers [42][43] Question: Q3 EBITDA margin guidance and operating leverage - Management expects sequential growth in top line and benefits from centralized sourcing to drive margin growth in the latter part of the year [46][47]