Financial Data and Key Metrics Changes - For Q4 2025, the company achieved revenue of over $552 million, with same-store sales growth of more than 2% [5][14] - Full-year revenue was $2.31 billion, reflecting a same-store sales decline of just over 2% and a total revenue decline of 5% due to strategic store and brand optimization efforts [16] - Gross margin for Q4 increased to 34.7%, while full-year gross margin was 32.5%, down slightly from the previous year [14][16] - The reported net loss for Q4 was just under $1 million or $0.04 per share, with adjusted EBITDA of $17.3 million [15][16] Business Line Data and Key Metrics Changes - Growth was driven by used boat revenue, finance and insurance, parts and service, and contributions from superyacht services and marina operations [14] - The company continues to focus on higher-margin businesses, which helped maintain gross margins despite low boat margins [6][34] Market Data and Key Metrics Changes - The recreational boating industry is experiencing softness, with double-digit declines in certain categories [26] - The company noted that inventory levels are expected to normalize, which should provide margin relief in the future [23] Company Strategy and Development Direction - The company is focused on diversifying its revenue sources and enhancing operational efficiency through strategic initiatives and product innovation [9][22] - Investments in technology, such as the Boatyard platform and CustomerIQ, are aimed at improving customer engagement and driving growth [8][9] - The company is optimistic about the industry's potential inflection points, with expectations for improved inventory levels and consumer demand due to anticipated interest rate cuts [22][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging environment due to elevated interest rates, inflation, and geopolitical tensions, but remains confident in the company's long-term strategy [5][22] - The company expects adjusted EBITDA for Fiscal 2026 to be in the range of $110 million to $125 million, with same-store sales growth anticipated to be flat to slight growth [18][19] Other Important Information - The company successfully launched new models at the Fort Lauderdale International Boat Show, achieving record sales [11] - Two new members were added to the board of directors to enhance strategic initiatives [12] Q&A Session Summary Question: How much of the same-store sales growth was due to units versus ASPs? - Management indicated that the increase in same-store sales was primarily driven by an increase in average unit selling price, as units were down in the mid-single-digit range [26] Question: Are rate cuts impacting consumer behavior? - Management noted that favorable rate environments tend to make small business owners more optimistic, which can lead to increased boat purchases [29] Question: Can you elaborate on the gross margin increase? - Management explained that the increase in gross margin was due to the expansion of higher-margin categories and the strategic initiatives in place, despite low boat margins [34] Question: What are the expectations for promotional drag entering the new year? - Management expects continued pressure on margins due to elevated inventory levels but anticipates potential relief as inventories normalize later in the year [41] Question: How does the guidance for Fiscal 2026 compare to industry performance? - Management acknowledged a more cautious view for Fiscal 2026, expecting performance to align more closely with industry trends rather than outperformance [44] Question: What is the status of operating expense rationalization? - Management confirmed the closure of 10 stores and ongoing cost-cutting measures, but noted that additional substantial savings are not expected in the current guidance [47]