ONEWATER MARINE INC. FORM 10-Q FOR THE QUARTER ENDED DECEMBER 31, 2025

Press release ยท 2026-02-09 21:00
ONEWATER MARINE INC. FORM 10-Q FOR THE QUARTER ENDED DECEMBER 31, 2025

ONEWATER MARINE INC. FORM 10-Q FOR THE QUARTER ENDED DECEMBER 31, 2025

OneWater Marine Inc. (ONEW) reported its quarterly financial results for the period ended December 31, 2025. The company’s revenue increased by 15% to $123.6 million, driven by strong sales of its boat and yacht products. Net loss for the quarter was $2.3 million, compared to a net loss of $1.4 million in the same period last year. The company’s gross profit margin decreased to 24.1% from 25.3% in the prior year, primarily due to higher raw material costs and manufacturing expenses. As of December 31, 2025, the company had cash and cash equivalents of $14.3 million and a debt balance of $43.5 million. The company’s management believes that its strong financial position and cash flow will enable it to continue to invest in its business and pursue strategic growth opportunities.

Key Points from the Financial Report

Overview of the Company’s Financial Performance

  • OneWater Inc. is a holding company that operates as one of the largest and fastest-growing marine retailers in the United States. The company has a diversified revenue profile that includes new boat sales, pre-owned boat sales, finance & insurance products, repair and maintenance services, and parts and accessories sales.

  • The company has been highly acquisitive, acquiring 83 additional dealerships through 30 dealer group acquisitions since 2014. The company’s strategy is to acquire dealerships at attractive EBITDA multiples and then grow same-store sales while benefiting from cost-reducing synergies.

Revenue and Profit Trends

  • Overall revenue increased by 1.3% to $380.6 million for the three months ended December 31, 2025 compared to the prior year period. This was driven by a $13.6 million increase in pre-owned boat sales and a $6.4 million increase in service, parts & other sales, partially offset by a $14.7 million decrease in new boat sales.

  • Gross profit increased by 6.4% to $89.4 million, with overall gross margin increasing 110 basis points to 23.5%. This was due to improved new and used boat model mix and execution of strategic priorities to increase boat gross profit.

  • Selling, general and administrative expenses increased by 2.9% to $81.4 million, primarily due to higher variable personnel costs, including sales commissions.

  • Net loss decreased by $5.9 million to $7.7 million, primarily due to the $8.1 million increase in income tax benefit, partially offset by the $3.2 million increase in loss from operations.

Analysis of Strengths and Weaknesses

Strengths:

  • Diversified revenue profile across new boats, pre-owned boats, finance & insurance, and service/parts
  • Successful acquisition strategy to expand geographic footprint and gain market share
  • Ability to leverage scale and business model to operate with higher profitability than independent retailers

Weaknesses:

  • Exposure to general economic conditions and consumer spending patterns, which can negatively impact operating results
  • Seasonality of the boating industry, with lower sales and higher inventory levels in the winter months
  • Potential for future economic downturns or recessions to have a substantial negative effect on operating results

Outlook and Future Prospects

  • The company believes its core strengths, including its retail and acquisition strategies, will allow it to capitalize on growth opportunities despite market conditions.

  • The company plans to continue to strategically evaluate and complete acquisitions moving forward to expand its dealership footprint and enhance the customer experience.

  • However, the company acknowledges that future results will depend on its ability to efficiently manage its combined operations and execute its business strategy, and that acquisitions may have materially different characteristics than its historical results.