10-K · August 27, 2026
Malibu Boats delivered strong reported revenue growth in fiscal 2026, driven primarily by the Saxdor acquisition, favorable product mix and pricing, but underlying profitability weakened as gross margin fell to 16.0%…
Earnings analysis · 10-Q
MBUU earnings analysis
Filed November 5, 2026 · Our reading of the company's report
The latest report
Malibu Boats delivered strong year-over-year improvement, with revenue up 29.9% to $252.9 million, operating margin turning positive at 5.2%, and diluted EPS of $0.30 beating the $0.21 consensus. Results were aided by…
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Malibu Boats delivered strong year-over-year improvement, with revenue up 29.9% to $252.9 million, operating margin turning positive at 5.2%, and diluted EPS of $0.30 beating the $0.21 consensus. Results were aided by the Saxdor acquisition, Cobalt and Saltwater Fishing growth, pricing and favorable mix, but the core Malibu segment declined 9.1% and profitability weakened sequentially from the prior quarter. Cash generation was a major weakness, with negative $31.1 million of operating cash flow and implied free cash flow of negative $39.5 million. Management expects soft demand, elevated incentives and $236 million-$248 million of December-quarter revenue, while tariff exposure and higher debt remain material risks.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.3
What stood out
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Saxdor lifted year-over-year revenue
Revenue increased 29.9% year over year to $252.9 million, driven primarily by $51.1 million of Saxdor revenue, higher Cobalt and Saltwater Fishing volumes, favorable mix and pricing. Sequentially, revenue declined from $296 million in the prior quarter.
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Gross margin improved year over year
Gross profit rose 35.5% year over year to $37.8 million, and gross margin expanded 70 basis points to 15.0% from 14.3%. However, margin declined from 17.7% in the prior quarter.
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Operating profitability turned positive
Operating income improved to $13.2 million, or a 5.2% margin, from an $0.8 million operating loss and negative 0.4% margin a year earlier. The improvement included a $15.0 million reduction in general and administrative expense from insurance proceeds no longer subject to a reservation of rights.
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EPS beat consensus despite sequential decline
GAAP diluted EPS was $0.30 versus a $0.04 loss a year earlier and exceeded the $0.21 consensus estimate. EPS declined from $0.36 in the prior quarter; adjusted EPS was $0.15 versus $0.15 a year earlier.
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Cobalt and fishing segments grew
Cobalt revenue increased 18.8% to $61.5 million and Saltwater Fishing revenue increased 7.1% to $68.9 million, while consolidated unit volume increased 15.1% to 1,299 units. Saxdor contributed 139 units.
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Liquidity remains available
The company ended the quarter with $173.2 million of revolving-credit availability and believes cash on hand, operating cash flow and debt-facility capacity will fund operations for at least the next twelve months and beyond.
What to watch
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Working capital sharply consumed cash
Operating cash flow was negative $31.1 million versus positive $6.5 million a year earlier, while capital expenditures were $8.4 million. Implied free cash flow was negative $39.5 million, reflecting a $36.9 million decrease from operating assets and liabilities.
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Soft demand and elevated incentives
Management expects retail demand to remain soft through December 31, 2026 and into 2027, with promotional activity and dealer incentive costs, including floor-plan interest support, remaining elevated. Malibu revenue fell 9.1% year over year to $71.5 million.
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Tariffs threaten cost and margin
The company estimates that 18%-20% of cost of sales for U.S.-located brands is sourced outside the United States and expects new tariff exposure of approximately 1.5%-3.0% of cost of sales through December 31, 2026 and into 2027.
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Higher leverage and interest burden
Debt increased under the new credit agreement, with $75.0 million outstanding on the revolver and $98.8 million under Term Loan A at September 30, 2026. Interest payments are estimated at approximately $9.3 million over the next twelve months.
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Saxdor earnout creates future obligation
Saxdor sellers may receive up to €71.3 million, or $84.2 million, of earnout consideration during 2027-2029; the recorded contingent earnout liability was $29.3 million at September 30, 2026.
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Acquisition integration and controls
The company states that no material risk-factor changes occurred during the quarter. Separately, Saxdor represented 26.6% of consolidated total assets and 20.2% of consolidated revenue, while its internal controls are still being integrated.
Management's outlook
Management expects December-quarter net sales of $236 million-$248 million and Adjusted EBITDA of $13.0 million-$15.0 million. The prior outlook for the twelve months ending June 30, 2027 was superseded by the fiscal-year-end change; calendar 2027 guidance is expected in March 2027. Management expects retail demand to remain soft and dealer inventories to decline modestly through December 31, 2026 and into 2027.
Earlier filings 4
10-Q · May 7, 2026
Malibu Boats reported its Q3 2026 results with revenue of $235.7 million, surpassing consensus estimates of $215.6 million. However, gross profit declined to $41.3 million with a gross margin of 17.5%, down from 20.0%…
10-Q · February 5, 2026
Malibu Boats reported net sales of $188.622 million for the quarter ended December 31, 2025, down from $200.280 million a year earlier, with gross profit declining to $25.122 million and the company recording an…
10-Q · May 8, 2025
Malibu Boats reported a strong operational rebound in Q3 (ended March 31, 2025): net sales rose to $228.662M and the company swung to operating income of $17.367M (7.6% op margin) and diluted EPS of $0.66 versus a…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.