# MasterCraft Boat Holdings, Inc. (MCFT)

Informational only - not investment advice.

CIK: 0001638290
SIC: 3730 Ship & Boat Building & Repairing
SIC breadcrumb: [Manufacturing](/division/D/) > [Transportation Equipment](/major-group/37/) > [SIC 3730 Ship & Boat Building & Repairing](/industry/3730/)
Latest 10-K filed: 2025-08-27
SEC page: https://www.sec.gov/edgar/browse/?CIK=1638290
Filing source: https://www.sec.gov/Archives/edgar/data/1638290/000095017025111682/mcft-20250630.htm

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 284203000 | USD | 2025 | 2025-08-27 |
| Net income | 7043000 | USD | 2025 | 2025-08-27 |
| Assets | 259948000 | USD | 2025 | 2025-08-27 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2025-08-27. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001638290.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  | 228,634,000 | 332,725,000 | 466,381,000 | 363,073,000 | 465,962,000 | 641,609,000 | 609,903,000 | 322,351,000 | 284,203,000 |
| Net income | 10,210,000 | 19,570,000 | 39,653,000 | 21,354,000 | -24,047,000 | 56,170,000 | 58,214,000 | 68,937,000 | 7,800,000 | 7,043,000 |
| Operating income | 22,011,000 | 33,515,000 | 55,983,000 | 33,259,000 | -26,567,000 | 78,643,000 | 116,195,000 | 121,429,000 | 27,476,000 | 11,232,000 |
| Gross profit | 61,079,000 | 63,476,000 | 90,364,000 | 113,127,000 | 75,356,000 | 125,131,000 | 168,190,000 | 168,739,000 | 71,610,000 | 56,865,000 |
| Diluted EPS | 0.56 | 1.05 | 2.12 | 1.14 | -1.28 | 2.96 | 3.12 | 3.88 | 0.46 | 0.43 |
| Operating cash flow | 30,747,000 | 26,232,000 | 49,397,000 | 55,886,000 | 30,198,000 | 68,538,000 | 73,311,000 | 134,196,000 | 12,497,000 | 35,593,000 |
| Capital expenditures | 3,817,000 | 4,135,000 | 5,305,000 | 14,064,000 | 14,241,000 | 25,219,000 | 12,296,000 | 24,563,000 | 10,525,000 | 9,198,000 |
| Share buybacks | 4,502,000 |  |  |  |  | 0.00 | 25,454,000 | 22,949,000 | 16,257,000 | 9,767,000 |
| Assets | 82,533,000 | 83,321,000 | 176,924,000 | 248,773,000 | 207,923,000 | 276,460,000 | 297,052,000 | 353,976,000 | 317,984,000 | 259,948,000 |
| Liabilities | 90,912,000 | 71,560,000 | 124,402,000 | 176,457,000 | 159,053,000 | 168,672,000 | 153,404,000 | 161,887,000 | 134,105,000 | 76,362,000 |
| Stockholders' equity | -8,379,000 | 11,761,000 | 52,522,000 | 72,316,000 | 48,870,000 | 107,788,000 | 143,648,000 | 191,969,000 | 183,679,000 | 183,386,000 |
| Cash and cash equivalents | 73,000 | 4,038,000 | 7,909,000 | 5,826,000 | 16,319,000 | 39,252,000 | 34,203,000 | 19,817,000 | 7,394,000 | 28,926,000 |
| Free cash flow | 26,930,000 | 22,097,000 | 44,092,000 | 41,822,000 | 15,957,000 | 43,319,000 | 61,015,000 | 109,633,000 | 1,972,000 | 26,395,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  | 8.56% | 11.92% | 4.58% | -6.62% | 12.05% | 9.07% | 11.30% | 2.42% | 2.48% |
| Operating margin |  | 14.66% | 16.83% | 7.13% | -7.32% | 16.88% | 18.11% | 19.91% | 8.52% | 3.95% |
| Return on equity |  | 166.40% | 75.50% | 29.53% | -49.21% | 52.11% | 40.53% | 35.91% | 4.25% | 3.84% |
| Return on assets | 12.37% | 23.49% | 22.41% | 8.58% | -11.57% | 20.32% | 19.60% | 19.48% | 2.45% | 2.71% |
| Liabilities / equity |  | 6.08 | 2.37 | 2.44 | 3.25 | 1.56 | 1.07 | 0.84 | 0.73 | 0.42 |
| Current ratio | 0.41 | 0.59 | 0.73 | 0.79 | 1.02 | 1.48 | 1.57 | 1.91 | 1.99 | 1.86 |

## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-07. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001638290.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q2 | 2022-01-02 |  |  | 0.81 | reported discrete quarter |
| 2022-Q3 | 2022-04-03 |  |  | 1.13 | reported discrete quarter |
| 2023-Q3 | 2023-04-02 | 166,776,000 | 22,510,000 | 1.27 | reported discrete quarter |
| 2023-Q4 | 2023-06-30 | 166,566,000 | 22,676,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2023-Q1 | 2023-10-01 |  |  | 0.36 | reported discrete quarter |
| 2023-Q2 | 2023-12-31 | 99,481,000 | 5,886,000 | 0.34 | reported discrete quarter |
| 2024-Q3 | 2024-03-31 | 95,708,000 | 3,755,000 | 0.22 | reported discrete quarter |
| 2024-Q4 | 2024-06-30 | 67,182,000 | -8,036,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-09-29 | 65,359,000 | -5,145,000 | -0.31 | reported discrete quarter |
| 2024-Q2 | 2024-12-29 | 63,368,000 | 2,748,000 | 0.17 | reported discrete quarter |
| 2025-Q3 | 2025-03-30 | 75,960,000 | 3,743,000 | 0.23 | reported discrete quarter |
| 2025-Q4 | 2025-06-30 | 79,516,000 | 5,697,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-09-28 | 69,002,000 | 3,636,000 | 0.22 | reported discrete quarter |
| 2025-Q2 | 2025-12-28 | 71,759,000 | 2,527,000 | 0.16 | reported discrete quarter |
| 2026-Q3 | 2026-03-29 | 78,206,000 | -742,000 | -0.05 | reported discrete quarter |

## Macro Cross-References
- [CPIAUCSL](/indicator/CPIAUCSL/): Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
- [UNRATE](/indicator/UNRATE/): Unemployment Rate
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit
- [DFEDTARL](/indicator/DFEDTARL/): Federal Funds Target Range - Lower Limit
- [DGS3MO](/indicator/DGS3MO/): Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
- [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [DGS30](/indicator/DGS30/): Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
- [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
- [CPILFESL](/indicator/CPILFESL/): Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
- [CPIUFDSL](/indicator/CPIUFDSL/): Consumer Price Index for All Urban Consumers: Food
- [CPIENGSL](/indicator/CPIENGSL/): Consumer Price Index for All Urban Consumers: Energy
- [CUSR0000SAH1](/indicator/CUSR0000SAH1/): Consumer Price Index for All Urban Consumers: Shelter
- [PCEPI](/indicator/PCEPI/): Personal Consumption Expenditures: Chain-type Price Index
- [PCEPILFE](/indicator/PCEPILFE/): Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [T10YIE](/indicator/T10YIE/): 10-Year Breakeven Inflation Rate
- [U6RATE](/indicator/U6RATE/): Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm
- [CIVPART](/indicator/CIVPART/): Labor Force Participation Rate
- [EMRATIO](/indicator/EMRATIO/): Employment-Population Ratio
- [UNEMPLOY](/indicator/UNEMPLOY/): Unemployed
- [CE16OV](/indicator/CE16OV/): Employment Level
- [ICSA](/indicator/ICSA/): Initial Claims
- [JTSJOL](/indicator/JTSJOL/): Job Openings: Total Nonfarm
- [JTSQUR](/indicator/JTSQUR/): Quits: Total Nonfarm
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [A191RL1Q225SBEA](/indicator/A191RL1Q225SBEA/): Real Gross Domestic Product: Percent Change from Preceding Period
- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units
- [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
- [RSAFS](/indicator/RSAFS/): Advance Retail Sales: Retail Trade
- [PCE](/indicator/PCE/): Personal Consumption Expenditures
- [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income
- [PSAVERT](/indicator/PSAVERT/): Personal Saving Rate
- [M2SL](/indicator/M2SL/): M2
- [BOPGSTB](/indicator/BOPGSTB/): U.S. International Trade in Goods and Services: Balance
- [MSPUS](/indicator/MSPUS/): Median Sales Price of Houses Sold for the United States
- [HSN1F](/indicator/HSN1F/): New One Family Houses Sold: United States
- [RHORUSQ156N](/indicator/RHORUSQ156N/): Homeownership Rate in the United States
- [TTLCONS](/indicator/TTLCONS/): Total Construction Spending: Total Construction in the United States
- [RRVRUSQ156N](/indicator/RRVRUSQ156N/): Rental Vacancy Rate in the United States
- [TOTALSL](/indicator/TOTALSL/): Total Consumer Credit Owned and Securitized
- [REVOLSL](/indicator/REVOLSL/): Revolving Consumer Credit Owned and Securitized
- [DRCCLACBS](/indicator/DRCCLACBS/): Delinquency Rate on Credit Card Loans, All Commercial Banks
- [GDP](/indicator/GDP/): Gross Domestic Product
- [GPDI](/indicator/GPDI/): Gross Private Domestic Investment
- [GCE](/indicator/GCE/): Government Consumption Expenditures and Gross Investment
- [PCEC](/indicator/PCEC/): Personal Consumption Expenditures
- [NETEXP](/indicator/NETEXP/): Net Exports of Goods and Services
- [GFDEBTN](/indicator/GFDEBTN/): Federal Debt: Total Public Debt
- [GFDEGDQ188S](/indicator/GFDEGDQ188S/): Federal Debt: Total Public Debt as Percent of Gross Domestic Product
- [FYFSD](/indicator/FYFSD/): Federal Surplus or Deficit
- [FGRECPT](/indicator/FGRECPT/): Federal Government Current Receipts
- [FGEXPND](/indicator/FGEXPND/): Federal Government: Current Expenditures
- [MANEMP](/indicator/MANEMP/): All Employees, Manufacturing
- [USCONS](/indicator/USCONS/): All Employees, Construction
- [USTRADE](/indicator/USTRADE/): All Employees, Retail Trade
- [USFIRE](/indicator/USFIRE/): All Employees, Financial Activities
- [USGOVT](/indicator/USGOVT/): All Employees, Government
- [AWHAETP](/indicator/AWHAETP/): Average Weekly Hours of All Employees, Total Private
- [DGORDER](/indicator/DGORDER/): Manufacturers' New Orders: Durable Goods
- [NEWORDER](/indicator/NEWORDER/): Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
- [BUSINV](/indicator/BUSINV/): Total Business Inventories
- [EXPGS](/indicator/EXPGS/): Exports of Goods and Services
- [IMPGS](/indicator/IMPGS/): Imports of Goods and Services
- [IR](/indicator/IR/): Import Price Index (End Use): All Commodities
- [PPIFIS](/indicator/PPIFIS/): Producer Price Index by Commodity: Final Demand

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1638290/000119312526211213/mcft-20260329.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-05-07
Report date: 2026-03-29

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The following discussion and analysis should be read together with the unaudited condensed consolidated financial statements and notes thereto included elsewhere in this Quarterly Report on Form 10-Q. In addition, the statements in this discussion and analysis regarding our expectations concerning the performance of our business, anticipated financial results, liquidity and the other non-historical statements are forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, the risks and uncertainties described in “Cautionary Note Regarding Forward-Looking Statements” above and in “Risk Factors” set forth in our 2025 Annual Report. Our actual results may differ materially from those contained in or implied by any forward-looking statements.

Certain statements in the following discussions are based on non-GAAP financial measures. A “non-GAAP financial measure” is a numerical measure of a registrant’s historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with U.S. GAAP in the statements of operations, balance sheets or statements of cash flows of the issuer; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. Non-GAAP financial measures do not include operating and statistical measures. The Company includes non-GAAP financial measures in Management’s Discussion and Analysis, as the Company’s management believes that these measures and the information they provide are useful to users of the financial statements, including investors, because they permit users of the financial statements to view the Company’s performance using the same tools that management utilizes and to better evaluate the Company’s ongoing business performance. In order to better align the Company’s reported results with the internal metrics used by the Company's management to evaluate business performance as well as to provide better comparisons to prior periods and peer data, non-GAAP measures exclude the impact of purchase accounting amortization related to business acquisitions.

Overview

The Company’s results for all periods presented, as discussed in Management’s Discussion and Analysis, are presented on a continuing operations basis, which consists of our MasterCraft and Pontoon segments.

Marine Products Transaction

On February 5, 2026, the Company announced that it had entered into the Marine Products Transaction. The Marine Products Transaction is expected to close shortly after our special meeting of shareholders, scheduled May 12, 2026, subject to approval by both the Company's and Marine Products’ shareholders and the satisfaction of other customary closing conditions.

Results of Operations

Despite recent geopolitical and macroeconomic uncertainty, the Company delivered increased net sales of $2.2 million and increased gross margin of 420 basis points for the third quarter of fiscal 2026, when compared with the same prior-year period. These increases were primarily driven by favorable model mix and option sales, increased prices, and decreased dealer incentives, while maintaining effective cost controls, partially offset by lower unit volumes.

18

Results of Continuing Operations

Consolidated Results

The table below presents our consolidated results of operations for the three and nine months ended:

Three Months Ended

2026 vs. 2025

Nine Months Ended

2026 vs. 2025

March 29,

March 30,

%

March 29,

March 30,

%

2026

2025

Change

Change

2026

2025

Change

Change

(Dollar amounts in thousands)

Consolidated statements of operations:

NET SALES

$

78,206

$

75,960

$

2,246

3.0

%

$

218,967

$

204,687

$

14,280

7.0

%

COST OF SALES

58,664

60,195

(1,531

)

(2.5

%)

168,502

166,232

2,270

1.4

%

GROSS PROFIT

19,542

15,765

3,777

24.0

%

50,465

38,455

12,010

31.2

%

OPERATING EXPENSES:

Selling and marketing

3,360

2,845

515

18.1

%

9,649

8,543

1,106

12.9

%

General and administrative

17,030

8,356

8,674

103.8

%

34,267

23,258

11,009

47.3

%

Amortization of other intangible assets

450

450

—

—

1,350

1,350

—

—

Total operating expenses

20,840

11,651

9,189

78.9

%

45,266

33,151

12,115

36.5

%

OPERATING INCOME (LOSS)

(1,298

)

4,114

(5,412

)

(131.6

%)

5,199

5,304

(105

)

(2.0

%)

OTHER INCOME (EXPENSE):

Interest expense

(58

)

—

(58

)

—

(146

)

(1,169

)

1,023

(87.5

%)

Interest income

760

760

—

—

2,257

2,649

(392

)

(14.8

%)

Loss on extinguishment of debt

(71

)

—

(71

)

—

(71

)

—

(71

)

0.0

%

INCOME (LOSS) BEFORE INCOME TAX EXPENSE

(667

)

4,874

(5,541

)

(113.7

%)

7,239

6,784

455

6.7

%

INCOME TAX EXPENSE

49

1,053

(1,004

)

(95.3

%)

1,811

1,521

290

19.1

%

INCOME (LOSS) FROM CONTINUING OPERATIONS

$

(716

)

$

3,821

$

(4,537

)

(118.7

%)

$

5,428

$

5,263

$

165

3.1

%

Additional financial and other data:

Unit sales volume:

MasterCraft

409

422

(13

)

(3.1

%)

1,195

1,196

(1

)

(0.1

%)

Pontoon

162

197

(35

)

(17.8

%)

524

527

(3

)

(0.6

%)

Consolidated unit sales volume

571

619

(48

)

(7.8

%)

1,719

1,723

(4

)

(0.2

%)

Net sales:

MasterCraft

$

66,764

$

64,227

$

2,537

4.0

%

$

186,647

$

174,857

$

11,790

6.7

%

Pontoon

11,442

11,733

(291

)

(2.5

%)

32,320

29,830

2,490

8.3

%

Consolidated net sales

$

78,206

$

75,960

$

2,246

3.0

%

$

218,967

$

204,687

$

14,280

7.0

%

Net sales per unit:

MasterCraft

$

163

$

152

$

11

7.2

%

$

156

$

146

$

10

6.8

%

Pontoon

71

60

11

18.3

%

62

57

5

8.8

%

Consolidated net sales per unit

137

123

14

11.4

%

127

119

8

6.7

%

Gross margin

25.0

%

20.8

%

 420 bps

23.0

%

18.8

%

 420 bps

Net sales increased $2.2 million during the third quarter of fiscal 2026, when compared with the same prior-year period. The increase in net sales was driven by favorable model mix and option sales, increased prices, and decreased dealer incentives, partially offset by lower unit volumes.

Net sales increased $14.3 million during the first nine months of fiscal 2026, when compared with the same prior year period, due to favorable model mix and option sales, increased prices, and decreased dealer incentives.

Gross margin percentage increased 420 basis points during both the third quarter and first nine months of fiscal 2026, when compared with the same prior year periods. Higher margins were primarily the result of increased net sales, as discussed above, combined with effective cost controls.

19

Operating expenses increased $9.2 million and $12.1 million during the third quarter and first nine months of fiscal 2026, respectively, when compared with the same prior year periods, due to business development and consulting costs related to the Marine Products Transaction, increased selling and marketing costs, and ERP implementation costs.

Segment Results

MasterCraft Segment

The following table sets forth MasterCraft segment results for the three and nine months ended:

Three Months Ended

2026 vs. 2025

Nine Months Ended

2026 vs. 2025

March 29,

March 30,

%

March 29,

March 30,

%

(Dollar amounts in thousands)

2026

2025

Change

Change

2026

2025

Change

Change

Net sales

$

66,764

$

64,227

$

2,537

4.0

%

$

186,647

$

174,857

$

11,790

6.7

%

Operating income

277

5,792

(5,515

)

(95.2

%)

10,834

12,864

(2,030

)

(15.8

%)

Purchases of property, plant and equipment

836

1,778

(942

)

(53.0

%)

4,797

5,459

(662

)

(12.1

%)

Unit sales volume

409

422

(13

)

(3.1

%)

1,195

1,196

(1

)

(0.1

%)

Net sales per unit

$

163

$

152

$

11

7.2

%

$

156

$

146

$

10

6.8

%

Net sales increased $2.5 million and $11.8 million during the third quarter and first nine months of fiscal 2026, respectively, when compared with the same prior year periods. The increase was driven by favorable model mix and option sales, increased prices, and decreased dealer incentives, partially offset by lower unit volumes.

Operating income decreased $5.5 million and $2.0 million during third quarter and first nine months of fiscal 2026, respectively, when compared with the same prior year periods. The change was primarily the result of increased operating expenses, partially offset by increased net sales, as discussed above.

Pontoon Segment

The following table sets forth Pontoon segment results for the three and nine months ended:

Three Months Ended

2026 vs. 2025

Nine Months Ended

2026 vs. 2025

March 29,

March 30,

%

March 29,

March 30,

%

(Dollar amounts in thousands)

2026

2025

Change

Change

2026

2025

Change

Change

Net sales

$

11,442

$

11,733

$

(291

)

(2.5

%)

$

32,320

$

29,830

$

2,490

8.3

%

Operating loss

(1,575

)

(1,678

)

103

(6.1

%)

(5,635

)

(7,560

)

1,925

(25.5

%)

Purchases of property, plant and equipment

203

233

(30

)

(12.9

%)

949

1,147

(198

)

(17.3

%)

Unit sales volume

162

197

(35

)

(17.8

%)

524

527

(3

)

(0.6

%)

Net sales per unit

$

71

$

60

$

11

18.3

%

$

62

$

57

$

5

8.8

%

Net sales decreased $0.3 million during the third quarter of fiscal 2026, when compared with the same prior-year period, primarily due to lower unit volumes, partially offset by favorable option sales, increased prices, and decreased dealer incentives.

Net sales increased $2.5 million during the first nine months of fiscal 2026, when compared to the same prior-year period, primarily due to favorable option sales, increased prices, and decreased dealer incentives, partially offset by unfavorable model mix.

Operating loss for the third quarter of fiscal 2026 decreased $0.1 million, when compared with the same prior-year period, due to effective cost controls, partially offset by decreased net sales, as discussed above.

Operating loss for the first nine months of fiscal 2026 decreased $1.9 million, when compared with the same prior-year periods, due to increased net sales, as discussed above, and effective cost controls.

20

Non-GAAP Measures

EBITDA, Adjusted EBITDA, EBITDA margin, and Adjusted EBITDA margin

We define EBITDA as income (loss) from continuing operations, before interest, income taxes, depreciation and amortization. We define Adjusted EBITDA as EBITDA further adjusted to eliminate certain non-cash charges or other items that we do not consider to be indicative of our core and/or ongoing operations. For the periods presented herein, the adjustments are for share-based compensation, senior leadership transition and organizational realignment costs, ERP implementation costs, and business development and consulting costs. We define EBITDA margin and Adjusted EBITDA margin as EBITDA and Adjusted EBITDA, respectively, each expressed as a percentage of Net sales.

Adjusted Net Income and Adjusted Net Income per share

We define Adjusted Net Income as income (loss) from continuing operations, adjusted to eliminate certain non-cash charges or other items that we do not consider to be indicative of our core and/or ongoing operations and reflecting income tax expense on adjusted net income before income taxes at our estimated annual effective tax rate. We define Adjusted Net Income per Share as Adjusted Net Income divided by the weighted-average basic and diluted shares outstanding. For the periods presented herein, these adjustments include other intangible asset amortization, share-based compensation, senior leadership transition and organizational realignment costs, ERP implementation costs, and business development and consu

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The following discussion and analysis should be read together with the sections entitled “Risk Factors” and the financial statements and the accompanying notes included elsewhere in this Form 10-K. In addition, the statements in this discussion and analysis regarding the performance expectations of our business, anticipated financial results, liquidity and the other non-historical statements are forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, the risks and uncertainties described in “Cautionary Note Regarding Forward-Looking Statements” and in “Risk Factors” above. Our actual results may differ materially from those contained in or implied by any forward-looking statements.

This section generally discusses 2025 and 2024 items and year-to-year comparisons between 2025 and 2024. Discussions of 2023 items and year-to-year comparisons between 2024 and 2023 are not included in this Annual Report on Form 10-K and can be found in Item 7 of the Company’s Annual Report on Form 10-K for the year ended June 30, 2024, which was filed with the SEC on August 30, 2024.

Key Performance Measures

From time to time we use certain key performance measures in evaluating our business and results of operations and we may refer to one or more of these key performance measures in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” These key performance measures include:

•
Unit sales volume — We define unit sales volume as the number of our boats sold to our dealers during a period.

•
Net sales per unit — We define net sales per unit as net sales divided by unit sales volume.

•
Gross margin — We define gross margin as gross profit divided by net sales, expressed as a percentage.

•
Net income margin — We define net income margin as income from continuing operations divided by net sales, expressed as a percentage.

•
Adjusted EBITDA — We define Adjusted EBITDA as income from continuing operations, before interest, income taxes, depreciation, and amortization (“EBITDA”), as further adjusted to eliminate certain non-cash charges and unusual items that we do not consider to be indicative of our core/ongoing operations. For a reconciliation of EBITDA to Adjusted EBITDA, see “Non-GAAP Measures” below.

•
Adjusted EBITDA margin — We define Adjusted EBITDA margin as Adjusted EBITDA divided by net sales, expressed as a percentage. For a reconciliation of Adjusted EBITDA margin to net income margin, see “Non-GAAP Measures” below.

•
Adjusted Net Income — We define Adjusted Net Income as income from continuing operations, adjusted to eliminate certain non-cash charges and other items that we do not consider to be indicative of our core/ongoing operations and adjusted for the impact to income tax expense related to non-GAAP adjustments. For a reconciliation of income from continuing operations to Adjusted Net Income, see “Non-GAAP Measures” below.

•
Free cash flow — We define Free cash flow from continuing operations as net cash from operating activities less purchases of property, plant, and equipment. For a reconciliation of net cash provided by operating activities of continuing operations to Free cash flow, see “Non-GAAP Measures” below.

Overview

Discontinued Operations

On October 18, 2024, the Company completed the Aviara Transaction and on December 23, 2024, the Company completed the Aviara Facility Sale. In fiscal 2023, the Company sold its NauticStar business. The Company's results for all periods presented, as discussed in Management's Discussion and Analysis, are presented on a continuing operations basis. Results related to our Aviara and NauticStar reporting units are reported as discontinued operations for all periods presented. See Notes 1 and 3 in Notes to Consolidated Financial Statements for more information on discontinued operations.

Leadership Transition

On April 7, 2025 Timothy M. Oxley, Chief Financial Officer (“CFO”) of the Company, announced his retirement from the Company, effective December 31, 2025. Prior to his retirement, Mr. Oxley stepped down as CFO, effective June 30, 2025, at which time, Mr. Oxley began serving as a Special Advisor. Scott Kent, Vice President of Finance, succeeded Mr. Oxley as CFO, effective July 1, 2025.

23

Tariff and Trade Environment

The recently imposed U.S. tariffs did not materially impact our fiscal 2025 results, but their effects and the potential imposition of modified or additional tariffs may, among other things, create new trade barriers that disrupt supply chains, raise costs, weaken consumer confidence and impact consumer demand for our products, and impact our ability to export our products, all of which could have an adverse effect on our business and financial results. The extent of the impact of tariffs on the Company’s business is highly uncertain and difficult to predict. We are closely monitoring the rapidly evolving tariff landscape and are working diligently with key suppliers to mitigate risks. For additional information regarding the potential impacts of tariffs on our business and results of operations, see Item 1A “Risk Factors — Risks Relating to Our Regulatory, Accounting, Legal, and Tax Environment.”

Results of Operations

Fiscal 2025 was impacted by anticipated market and economic uncertainty. Net sales decreased primarily due to planned lower unit volumes aimed at aligning dealer inventories with retail demand. Gross margin declined due to lower cost absorption driven by decreased production volume.

We derived the consolidated statements of operations for the fiscal years ended June 30, 2025 and 2024 from our audited consolidated financial statements and related notes included elsewhere in this Form 10-K. Our historical results are not necessarily indicative of the results that may be expected in the future.

Consolidated Results

2025

2024

Change

% Change

(Dollar amounts in thousands)

Consolidated statements of operations:

NET SALES

$

284,203

$

322,351

$

(38,148

)

(11.8

%)

COST OF SALES

227,338

250,741

(23,403

)

(9.3

%)

GROSS PROFIT

56,865

71,610

(14,745

)

(20.6

%)

OPERATING EXPENSES:

Selling and marketing

11,740

11,203

537

4.8

%

General and administrative

32,093

31,119

974

3.1

%

Amortization of other intangible assets

1,800

1,812

(12

)

(0.7

%)

Total operating expenses

45,633

44,134

1,499

3.4

%

OPERATING INCOME

11,232

27,476

(16,244

)

(59.1

%)

OTHER INCOME (EXPENSE):

Interest expense

(1,169

)

(3,292

)

2,123

(64.5

%)

Interest income

3,472

5,789

(2,317

)

(40.0

%)

INCOME BEFORE INCOME TAX EXPENSE

13,535

29,973

(16,438

)

(54.8

%)

INCOME TAX EXPENSE

2,820

6,730

(3,910

)

(58.1

%)

INCOME FROM CONTINUING OPERATIONS

$

10,715

$

23,243

$

(12,528

)

(53.9

%)

Additional financial and other data:

Unit sales volume:

MasterCraft

1,548

1,755

(207

)

(11.8

%)

Pontoon

745

1,241

(496

)

(40.0

%)

Consolidated unit sales volume

2,293

2,996

(703

)

(23.5

%)

Net sales:

MasterCraft

$

240,763

$

262,736

$

(21,973

)

(8.4

%)

Pontoon

43,440

59,615

(16,175

)

(27.1

%)

Consolidated net sales

$

284,203

$

322,351

$

(38,148

)

(11.8

%)

Net sales per unit:

MasterCraft

$

156

$

150

$

6

4.0

%

Pontoon

58

48

10

20.8

%

Consolidated net sales per unit

124

108

16

14.8

%

Gross margin

20.0

%

22.2

%

 (220) bps

Net Sales. Net Sales decreased 11.8 percent for fiscal 2025 when compared to fiscal 2024. The decrease was a result of planned lower unit volumes and changes in price, partially offset by favorable model mix related to new product introductions, favorable option sales, and decreased dealer incentives.

24

Gross Margin. Gross Margin percentage declined 220 basis points during fiscal 2025 when compared to fiscal 2024. Lower margins were the result of lower cost absorption due to decreased production volume, material and overhead inflation, and changes in sales price.

Operating Expenses. Operating expenses increased 3.4 percent during fiscal 2025 when compared to the same prior year period mainly due to increased variable compensation costs.

Interest Expense. Interest expense decreased $2.1 million primarily due to all outstanding borrowings under the Credit Agreement being repaid during the first six months of fiscal 2025.

Interest Income. Interest income decreased $2.3 million during fiscal 2025 primarily due to certain investment securities being sold to repay outstanding borrowings under the Revolving Credit Facility during the second quarter of fiscal 2025.

Income Tax Expense. Our consolidated effective income tax rate decreased to 20.8 percent for fiscal 2025 from 22.5 percent for fiscal 2024. See Note 10 in Notes to Consolidated Financial Statements for more information.

Segment Results

MasterCraft Segment

The following table sets forth MasterCraft segment results for the fiscal years ended:

(Dollar amounts in thousands)

2025

2024

Change

% Change

Net sales

$

240,763

$

262,736

$

(21,973

)

(8.4

%)

Operating income

20,658

29,573

(8,915

)

(30.1

%)

Purchases of property, plant and equipment

7,219

7,912

(693

)

(8.8

%)

Unit sales volume

1,548

1,755

(207

)

(11.8

%)

Net sales per unit

$

156

$

150

$

6

4.0

%

Net sales decreased 8.4 percent during fiscal 2025, when compared to fiscal 2024. The decrease was primarily driven by lower unit volumes and changes in price, partially offset by favorable model mix, decreased dealer incentives, and favorable option sales.

Operating income decreased 30.1 percent during fiscal 2025, when compared to the same prior year period. The overall decrease was driven by decreased net sales, as discussed above, increased materials and overhead inflation, and increased variable compensation costs.

Pontoon Segment

The following table sets forth Pontoon segment results for the fiscal years ended:

(Dollar amounts in thousands)

2025

2024

Change

% Change

Net sales

$

43,440

$

59,615

$

(16,175

)

(27.1

%)

Operating loss

(9,426

)

(2,097

)

(7,329

)

349.5

%

Purchases of property, plant and equipment

1,979

2,613

(634

)

(24.3

%)

Unit sales volume

745

1,241

(496

)

(40.0

%)

Net sales per unit

$

58

$

48

$

10

20.8

%

Net sales decreased 27.1 percent during fiscal 2025, when compared to fiscal 2024, as a result of decreased unit volume and increased dealer incentives, partially offset by favorable model mix and favorable option sales.

Operating loss was $9.4 million during fiscal 2025, compared to $2.1 million in fiscal 2024. The change was primarily due to decreased net sales, as discussed above, and increased labor and materials cost.

25

Non-GAAP Measures

EBITDA, Adjusted EBITDA, EBITDA Margin, and Adjusted EBITDA Margin

We define EBITDA as income from continuing operations, before interest, income taxes, depreciation and amortization. We define Adjusted EBITDA as EBITDA further adjusted to eliminate certain non-cash charges or other items that we do not consider to be indicative of our core and/or ongoing operations. For the periods presented herein, these adjustments include share-based compensation, senior leadership transition and organizational realignment costs, and business development consulting costs, as described in more detail below. We define EBITDA margin and Adjusted EBITDA margin as EBITDA and Adjusted EBITDA, respectively, expressed as a percentage of Net sales.

Adjusted Net Income and Adjusted Net Income Per Share

We define Adjusted Net Income and Adjusted Net Income per share as income from continuing operations adjusted to eliminate certain non-cash charges or other items that we do not consider to be indicative of our core and/or ongoing operations and reflecting income tax expense on adjusted net income before income taxes at our estimated annual effective tax rate. For the periods presented herein, these adjustments include other intangible asset amortization, share-based compensation, senior leadership transition and organizational realignment costs, and business development consulting costs.

Free Cash Flow

We define Free Cash Flow from continuing operations as net cash flows from operating activities less purchases of property, plant, and equipment.

EBITDA, Adjusted EBITDA, EBITDA margin, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Net Income per share, and Free Cash Flow, which we refer to collectively as the Non-GAAP Measures, are not measures of net income, operating income, or net cash flows as determined under accounting principles generally accepted in the United States, or U.S. GAAP. The Non-GAAP Measures are not measures of performance in accordance with U.S. GAAP and should not be considered as an alternative to net income, net income per share, or operating cash flows determined in accordance with U.S. GAAP. Additionally, Adjusted EBITDA is not intended to be a measure of cash flow. We believe that the inclusion of the Non-GAAP Measures is appropriate to provide additional information to investors because securities analysts and investors use the Non-GAAP Measures to assess our operating performance across periods on a consistent basis and to evaluate the relative risk of an investment in our securities. We use Adjusted Net Income and Adjusted Net Income per share to facilitate a comparison of our operating performance on a consistent basis from period to period that, when viewed in combination with our results prepared in accordance with U.S. GAAP, provides a more complete understanding of factors and trends affecting our business than does U.S. GAAP measures alone. We believe Adjusted Net Income and Adjusted Net Income per share assists our Board, management, investors, and other users of the financial statements in comparing our net income on a consistent basis from period to period because it removes certain non-cash items and other items that we do not consider to be indicative of our core and/or ongoing operations and reflecting income tax expense on adjusted net income before income taxes at our estimated annual effective tax rate. The Non-GAAP Measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results as reported under U.S. GAAP. Some of these limitations are:

•
Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and the Non-GAAP Measures do not reflect any cash requirements for such replacements;

•
Certain Non-GAAP Measures do not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments;

•
Certain Non-GAAP Measures do not reflect changes in, or cash requirements for, our working capital needs;

•
Certain Non-GAAP Measures do not reflect our tax expense or any cash requirements to pay income taxes;

•
Certain Non-GAAP Measures do not reflect interest expense, or the cash requirements necessary to service interest payments on our indebtedness; and

•
Certain Non-GAAP Measures do not reflect the impact of earnings or charges resulting from matters we do not consider to be indicative of our core and/or ongoing operations, but may nonetheless have a material impact on our results of operations.

In addition, because not all companies use identical calculations, our presentation of the Non-GAAP Measures may not be comparable to similarly titled measures of other companies, including companies in our industry.

26

The following table presents a reconciliation of income from continuing operations as determined in accordance with U.S. GAAP to EBITDA and Adjusted EBITDA, and income from continuing operations margin (expressed as a percentage of net sales) to Adjusted EBITDA margin (expressed as a percentage of net sales) for the periods indicated:

% of Net

% of Net

% of Net

(Dollar amounts in thousands)

2025

sales

2024

sales

2023

sales

Income from continuing operations

$

10,715

3.8%

$

23,243

7.2%

$

93,801

15.4%

Income tax expense

2,820

6,730

28,300

Interest expense

1,169

3,292

2,679

Interest income

(3,472

)

(5,789

)

(3,351

)

Depreciation and amortization

9,579

8,375

8,396

EBITDA

20,811

7.3%

35,851

11.1%

129,825

21.3%

Share-based compensation

2,915

2,602

3,462

Senior leadership transition and organizational realignment costs(a)

659

1,708

—

Business development consulting costs(b)

—

—

312

Adjusted EBITDA

$

24,385

8.6%

$

40,161

12.5%

$

133,599

21.9%

The following table sets forth a reconciliation of income from continuing operations as determined in accordance with U.S. GAAP to Adjusted Net Income for the periods indicated:

(Dollar amounts in thousands, except per share data)

2025

2024

2023

Income from continuing operations

$

10,715

$

23,243

$

93,801

Income tax expense

2,820

6,730

28,300

Amortization of acquisition intangibles

1,800

1,812

1,849

Share-based compensation

2,915

2,602

3,462

Senior leadership transition and organizational realignment costs(a)

659

1,708

—

Business development consulting costs(b)

—

—

312

Adjusted Net Income before income taxes

18,909

36,095

127,724

Adjusted income tax expense(c)

3,782

7,219

29,377

Adjusted Net Income

$

15,127

$

28,876

$

98,347

Adjusted Net Income per share:

Basic

$

0.92

$

1.71

$

5.58

Diluted

$

0.92

$

1.69

$

5.54

Weighted average shares used for the computation of(d):

Basic Adjusted Net Income per share

16,428,485

16,930,348

17,618,797

Diluted Adjusted Net Income per share

16,525,773

17,038,305

17,765,117

The following table presents the reconciliation of income from continuing operations per diluted share to Adjusted net income per diluted share for the periods presented:

2025

2024

2023

Income from continuing operations per diluted share

$

0.65

$

1.36

$

5.28

Impact of adjustments:

Income tax expense

0.17

0.39

1.59

Amortization of acquisition intangibles

0.11

0.11

0.10

Share-based compensation

0.18

0.15

0.19

Senior leadership transition and organizational realignment costs(a)

0.04

0.10

—

Business development consulting costs(b)

—

—

0.02

Adjusted Net Income per diluted share before income taxes

1.15

2.11

7.18

Impact of adjusted income tax expense on net income per diluted share before income taxes(c)

(0.23

)

(0.42

)

(1.64

)

Adjusted Net Income per diluted share

$

0.92

$

1.69

$

5.54

27

The following table presents a reconciliation of net cash flows by operating activities of continuing operations as determined in accordance with U.S. GAAP to Free Cash Flow for the periods presented:

2025

2024

2023

Net cash provided by operating activities of continuing operations

$

38,222

$

12,200

$

136,630

Less:

Purchases of property, plant and equipment

(9,198

)

(10,525

)

(24,563

)

Free cash flow

$

29,024

$

1,675

$

112,067

(a)
Represents amounts paid for legal fees and recruiting costs associated with the CEO and CFO transitions, as well as non-recurring severance costs incurred as part of the Company's strategic organizational realignment undertaken in connection with the transitions.

(b)
Represents non-recurring third-party costs associated with business development activities, primarily relating to consulting costs for evaluation and execution of internal growth and other strategic initiatives. The evaluation and execution of the internal growth and other strategic initiatives is a bespoke initiative, and the costs associated therewith do not constitute normal recurring cash operating expenses necessary to operate the Company’s business.

(c)
Reflects income tax expense at a tax rate of 20.0% for 2025 and 2024, and 23.0% for 2023.

(d)
Represents the Weighted average shares used for the computation of Basic and Diluted earnings (loss) per share as presented on the Consolidated Statements of Operations to calculate Adjusted Net Income per diluted share for all periods presented herein.

Liquidity and Capital Resources

Our primary liquidity and capital resource needs are to finance working capital, fund capital expenditures, service debt, fund potential acquisitions, and fund our share repurchase program. Our principal sources of liquidity are our cash balance, short-term investments, cash generated from operating activities, our revolving credit agreement and the refinancing and/or new issuance of long-term debt. We believe our cash balance, investments, cash from operations, and our ability to borrow, will be sufficient to provide for our liquidity and capital resource needs.

Cash and cash equivalents totaled $28.9 million as of June 30, 2025, an increase of $21.5 million from $7.4 million as of June 30, 2024. Short-term investments totaled $50.5 million as of June 30, 2025, a decrease of $28.3 million from $78.8 million as of June 30, 2024. Net changes in Cash and cash equivalents and Short-term investments include proceeds from short-term investments being used to repay outstanding amounts under the Revolving Credit Facility and $26.1 million in net proceeds from the Aviara Facility Sale. Refer to Note 3 — Discontinued Operations and Note 4 — Short-term investments in the Notes to Consolidated Financial Statements for further details. Total debt as of June 30, 2024 was $49.3 million, with no amounts outstanding as of June 30, 2025.

As of June 30, 2025, we had no amounts outstanding under the Revolving Credit Facility, leaving $100.0 million of available borrowing capacity. Refer to Note 9 — Long-Term Debt in the Notes to Consolidated Financial Statements for further details.

On July 24, 2023, the Board authorized a new share repurchase program under which the Company may repurchase up to $50.0 million of its outstanding shares of common stock. The new authorization became effective upon the completion of the Company’s previously existing $50.0 million stock repurchase authorization. As of June 30, 2025, $25.9 million remained available under the new authorization.

During fiscal 2025 and fiscal 2024, the Company repurchased 531,970 shares and 750,943 shares of common stock for $9.5 million and $16.3 million, respectively, in cash, including related fees and expenses.

The following table and discussion below relate to our cash flows from continuing operations for operating, investing, and financing activities:

(Dollar amounts in thousands)

2025

2024

2023

Total cash provided by (used in):

Operating activities

$

38,222

$

12,200

$

136,630

Investing activities

20,044

4,051

(115,173

)

Financing activities

(60,097

)

(23,135

)

(27,148

)

Net change in cash and cash equivalents from continuing operations

$

(1,831

)

$

(6,884

)

$

(5,691

)

Fiscal 2025 Cash Flow from Continuing Operations

Net cash provided by operating activities was $38.2 million, primarily due to net income and favorable working capital changes. Working capital is defined as accounts receivable, income tax receivable, inventories, and prepaid expenses and other current assets net of accounts payable, income tax payable, and accrued expenses and other current liabilities as presented in the consolidated balance

28

sheets, excluding the impact of acquisitions and non-cash adjustments. Favorable changes in working capital primarily consisted of a decrease in inventories, accounts receivable, other assets, prepaid expenses and other current assets, and an increase in income tax payable, partially offset by a decrease in accounts payable. Inventories decreased due to timing of sales at the end of the period compared to the end of the prior-year and planned raw materials reduction due to lower unit production volume. Accounts receivable decreased due to timing of sales at the end of the period compared to the end of the prior-year period. Income tax payable increased due to timing of estimated payments. Prepaid expenses and other current assets decreased mainly due to lower general insurance premiums. Accounts payable decreased due to a reduction in raw material purchases and timing of purchases at the end of the period compared to the prior-year period.

Net cash provided by investing activities was $20.0 million, which included net proceeds of $29.2 million from available-for-sale securities, partially offset by $9.2 million in capital expenditures. Our capital spending was primarily focused on information technology, tooling and machinery and equipment.

Net cash used in financing activities was $60.1 million, which included share repurchases totaling $9.5 million, excluding related fees and expenses, and $49.5 million used to repay outstanding borrowings of the Term Loan. Drawn amounts on the Revolving Credit Facility were fully repaid as of June 30, 2025.

Fiscal 2024 Cash Flow from Continuing Operations

Net cash provided by operating activities was $12.2 million, primarily due to net income, partially offset by changes in working capital as defined above. Changes in working capital primarily consisted of a decrease in accrued expenses and other current liabilities, accounts payable, and income tax payable, partially offset by a decrease in inventories and accounts receivable. Accrued expenses and other current liabilities decreased as a result of lower compensation related accruals, warranty costs as a result of reduced unit volumes, and reduced volume rebates, offset by an increase in retail rebates. Accounts payable decreased as a result of decreased production levels. Income tax payable decreased due to the lower earnings compared to the prior year. Inventories decreased as we rebalanced inventory levels to align with lower production levels. Accounts receivable decreased due to reduced unit volumes.

Net cash provided by investing activities was $4.1 million, due to net proceeds in short-term investments of $14.6 million, partially offset by $10.5 million of capital expenditures. Our capital spending was focused on facility enhancements, information technology, and tooling.

Net cash used in financing activities was $23.1 million, which included net payments of $4.5 million on long-term debt and $16.3 million of share repurchases.

Off-Balance Sheet Arrangements

The Company did not have any off-balance sheet financing arrangements as of June 30, 2025.

Contractual Obligations

As of June 30, 2025, the Company’s material cash obligations were as follows:

Long-Term Debt Obligations — See Note 9 – Long-Term Debt in the accompanying Notes to Consolidated Financial Statements for further information.

Purchase Commitments — As of June 30, 2025, the Company is committed to purchasing $2.8 million of engines. See Note 12 in the accompanying Notes to Consolidated Financial Statements for more information.

Repurchase Obligations — The Company has reserves to cover potential losses associated with repurchase obligations based on historical experience and current facts and circumstances. We incurred no material impact from repurchase events during fiscal 2025, 2024, or 2023. An adverse change in retail sales, however, could require us to repurchase boats repossessed by floor plan financing companies upon an event of default by any of our dealers, subject in some cases to an annual limitation. See Note 12 in the accompanying Notes to Consolidated Financial Statements for more information.

In addition to the above, we have unrecognized tax benefits that are not reflected here because the Company cannot predict when open income tax years will close with completed examinations. See Note 10 in Notes to Consolidated Financial Statements for more information.

Critical Accounting Estimates

Significant accounting policies are described in the notes to the consolidated financial statements. In the application of these policies, certain estimates are made that may have a material impact on our financial condition and results of operations. Actual results could

29

differ from those estimates and cause our reported net income to vary significantly from period to period. For additional information regarding these policies, see Note 1 – Significant Accounting Policies in Notes to Consolidated Financial Statements.

Asset Impairment

Goodwill

The Company reviews goodwill for impairment at its annual impairment testing date, which is June 30, and whenever events or changes in circumstances indicate that the fair value of a reporting unit may be below its carrying value. As part of the impairment tests, the Company may perform a qualitative, rather than quantitative, assessment to determine whether the fair values of its reporting units are “more likely than not” to be greater than their carrying values. In performing this qualitative analysis, the Company considers various factors, including the effect of market or industry changes and the reporting units’ actual results compared to projected results.

If the fair value of a reporting unit does not meet the “more likely than not” criteria discussed above, the impairment test for goodwill is a quantitative test. This test involves comparing the fair value of the reporting unit with its carrying value. If the fair value exceeds the carrying value, goodwill is not considered impaired. If the carrying amount exceeds the fair value then the goodwill is considered impaired and an impairment loss is recognized in an amount by which the carrying value exceeds the reporting unit’s fair value, not to exceed the carrying amount of the goodwill allocated to that reporting unit.

The Company calculates the fair value of its reporting units considering both the income approach and market approach. The income approach calculates the fair value of the reporting unit using a discounted cash flow method. Internally forecasted future cash flows, which the Company believes reasonably approximate market participant assumptions, are discounted using a weighted average cost of capital (“Discount Rate”) developed for each reporting unit. The Discount Rate is developed using market observable inputs, as well as considering whether or not there is a measure of risk related to the specific reporting unit’s forecasted performance. Fair value under the market approach is determined for each reporting unit by applying market multiples for comparable public companies to the reporting unit’s financial results. The key judgements in these calculations are the assumptions used in determining the reporting unit’s forecasted future performance, including revenue growth and operating margins, as well as the perceived risk associated with those forecasts in determining the Discount Rate, along with selecting representative market multiples.

As of June 30, 2025, only the MasterCraft reporting unit has a goodwill balance. The Company performed a qualitative assessment and concluded the fair value of the MasterCraft reporting unit is “more likely than not” greater than its carrying value.

Other Intangible Assets

The Company’s primary intangible assets other than goodwill are dealer networks and trade names acquired in business combinations. These intangible assets are initially valued using a methodology commensurate with the intended use of the asset. The dealer networks were valued using an income approach, which requires an estimate or forecast of the expected future cash flows from the dealer network through the application of the multi-period excess earnings approach. The fair value of trade names is measured using a relief-from-royalty approach, a variation of the income approach, which requires an estimate or forecast of the expected future cash flows. This method assumes the value of the trade name is the discounted cash flows of the amount that would be paid to third parties had the Company not owned the trade name and instead licensed the trade name from another company. The basis for future sales projections for these methods are based on internal revenue forecasts by reporting unit, which the Company believes represent reasonable market participant assumptions. The future cash flows are discounted using an applicable Discount Rate as well as any potential risk premium to reflect the inherent risk of holding a standalone intangible asset.

The key judgements in these fair value calculations, as applicable, are: assumptions used in developing internal revenue growth and dealer expense forecasts, assumed dealer attrition rates, the selection of an appropriate royalty rate, as well as the perceived risk associated with those forecasts in determining the Discount Rate.

The costs of amortizable intangible assets, including dealer networks, are recognized over their expected useful lives, approximately ten years for the dealer networks, using the straight-line method. The dealer network intangible asset within our MasterCraft reporting unit is fully amortized. The dealer network intangible asset within our Pontoon reporting unit that is subject to amortization is evaluated for impairment using a process similar to that used to evaluate long-lived assets as described below.

Intangible assets not subject to amortization, including trade names, are assessed for impairment at least annually, at June 30, and whenever events or changes in circumstances indicate that it is more likely than not that an asset may be impaired. As part of the annual test, the Company may perform a qualitative, rather than quantitative, assessment to determine whether each trade name intangible asset is “more likely than not” impaired. In performing this qualitative analysis, the Company considers various factors, including macroeconomic events, industry and market events and cost related events. If the “more likely than not” criteria is not met, the impairment test for indefinite-lived intangible assets consists of a comparison of the fair value of the intangible asset with its carrying amount. An impairment loss is recognized for the amount by which the carrying value exceeds the fair value of the asset.

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During the fiscal 2025 fourth quarter, the Company determined certain indicators of potential impairment existed for the Crest brand intangible assets, resulting in an undiscounted cash flows analysis for the Crest dealer network and a discounted cash flows analysis for the Crest trade name. The analysis concluded both the undiscounted cash flows and fair value exceeded their related carrying values, respectively, resulting in no impairment.

Long-Lived Assets

The Company assesses the potential for impairment of its long-lived assets if facts and circumstances, such as declines in sales, earnings, or cash flows or adverse changes in the business climate, suggest that they may be impaired. A current expectation that, more likely than not, a long-lived asset (asset group) will be sold or otherwise disposed of significantly before the end of its previously estimated useful life will also trigger a review for impairment. The Company performs its assessment by comparing the book value of the asset groups to the estimated future undiscounted cash flows associated with the asset groups. If any impairment in the carrying value of its long-lived assets is indicated, the assets would be adjusted to an estimate of fair value.

During the year ended June 30, 2024, the Company recognized $6.9 million in long-lived asset impairment charges related to its Aviara reporting unit. These charges are included in the loss from discontinued operations.

In conjunction with the impairment assessment as discussed above, the Company determined certain indicators of potential impairment existed for the Crest brand asset group, resulting in an undiscounted cash flow analysis. The analysis concluded the undiscounted cash flows exceeded the carrying value of the asset group, resulting in no impairment.

Product Warranties — The Company offers warranties on the sale of certain products generally for periods of between one and ten years from the date of retail sale, and provides a limited lifetime warranty on certain parts, as noted in the warranty. These warranties require us or our dealers to repair or replace defective products during the warranty period at no cost to the consumer. We estimate the costs that may be incurred under our basic limited warranty and record as a liability the amount of such costs at the time the product revenue is recognized. The key judgements that affect our estimate for warranty liability include the number of units sold, historical and anticipated rates of warranty claims and cost per claim. We periodically assess the adequacy of the recorded warranty liabilities and adjust the amounts as actual claims are determined or as changes in the obligations become reasonably estimable. We also adjust our liability for specific warranty matters when they become known and exposure can be estimated. Future warranty claims may differ from our estimate of the warranty liability, which could lead to changes in the Company’s warranty liability in future periods.

Income Taxes—We are subject to income taxes in the United States of America and the United Kingdom. For fiscal 2025 and 2024, our effective tax rate differs from the statutory rate, primarily due to the inclusion of the state tax rate and uncertain tax positions, partially offset by the benefit from tax credits. See the components of our effective tax rate reconciliation in Note 10.

Significant judgment is required in evaluating our uncertain tax positions and determining our provision for income taxes. Although we believe our reserves are reasonable, we cannot provide assurance that the final tax outcome of these matters will not be different from that which is reflected in our historical income tax provisions and accruals. We adjust these reserves in light of changing facts and circumstances, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will impact the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the impact of reserve provisions and changes to reserves that are considered appropriate, as well as the related net interest.

Revenue Recognition — The Company’s revenue is derived primarily from the sale of boats and trailers, marine parts, and accessories to its independent dealers. The Company recognizes revenue when obligations under the terms of a contract are satisfied and control over promised goods is transferred to a customer. For substantially all sales, this occurs when the product is released to the carrier responsible for transporting it to a customer. The Company typically receives payment from the floor plan financing providers within 5 business days of shipment. Revenue is measured as the amount of consideration we expect to receive in exchange for a product. The Company offers dealer incentives that include wholesale rebates, retail rebates and promotions, floor plan reimbursement or cash discounts, and other allowances that are recorded as reductions of revenues in net sales in the consolidated statements of operations. The consideration recognized represents the amount specified in a contract with a customer, net of estimated incentives the Company reasonably expects to pay. The estimated liability and reduction in revenue for dealer incentives is recorded at the time of sale. Subsequent adjustments to incentive estimates are possible because actual results may differ from these estimates if conditions dictate the need to enhance or reduce sales promotion and incentive programs or if dealer achievement or other items vary from historical trends. Accrued dealer incentives are included in Accrued expenses and other current liabilities in the accompanying consolidated balance sheets.

Rebates and Discounts

Dealers earn wholesale rebates based on purchase volume commitments and achievement of certain performance metrics. The Company estimates the amount of wholesale rebates based on historical achievement, forecasted volume, and assumptions regarding dealer

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behavior. Rebates that apply to boats already in dealer inventory are referred to as retail rebates. The Company estimates the amount of retail rebates based on historical data for specific boat models adjusted for forecasted sales volume, product mix, dealer and consumer behavior, and assumptions concerning market conditions. The Company also utilizes various programs whereby it offers cash discounts or agrees to reimburse its dealers for certain floor plan interest costs incurred by dealers for limited periods of time, generally ranging up to nine months.

Other Revenue Recognition Matters

Dealers generally have no right to return unsold boats. Occasionally, the Company may accept returns in limited circumstances and at the Company’s discretion under its warranty policy. The Company may be obligated, in the event of default by a dealer, to accept returns of unsold boats under its repurchase commitment to floor plan financing providers, who are able to obtain such boats through foreclosure. The repurchase commitment is on an individual unit basis with a term from the date it is financed by the lending institution through the payment date by the dealer, generally not exceeding 30 months. The Company accounts for these arrangements as guarantees and recognizes a liability based on the estimated fair value of the repurchase obligation. The estimated fair value takes into account our estimate of the loss we will incur upon resale of any repurchases. The Company accrues the estimated fair value of this obligation based on the age of inventory currently under floor plan financing and estimated credit quality of dealers holding the inventory. Inputs used to estimate this fair value include significant unobservable inputs that reflect the Company’s assumptions about the inputs that market participants would use and, therefore, this liability is classified within Level 3 of the fair value hierarchy. We incurred no material impact from repurchase events during fiscal 2025, 2024, or 2023. See Note 12 in Notes to Consolidated Financial Statements for more information on repurchase obligations.

New Accounting Pronouncements

See “Part II, Item 8. Financial Statements and Supplementary Data — Note 1 — Significant Accounting Policies — New Accounting Pronouncements.”