Malibu Boats reported net sales of $188.6 million for the second quarter ended December 31, 2025, representing a 5.8% decline year-over-year. Gross profit fell 32.9% to $25.1 million, driving gross margin down 540 basis points to 13.3%. On a GAAP basis, the company recorded a net loss of $2.5 million, or $0.13 per diluted share, compared with net income of $2.4 million, or $0.12 per share, in the prior-year quarter. Adjusted EBITDA decreased by 52.5% to $8.0 million, yielding an Adjusted EBITDA margin of 4.3%.

Unit shipments across all brands declined by 9.5% to 1,106 boats, with volume decreases of 12 units in the flagship wakesports segment, 35 units in the saltwater fishing line, and 69 units in the luxury performance boats business. Offsetting some of the volume headwinds, average revenue per unit rose 4.1% to $170,544 driven by selective price increases and favorable model mixes in the fishing and performance segments. The flagship wakesports line saw a 2.4% decline in per-unit revenue, while pricing in saltwater and performance brands climbed 4.7% and 14.8%, respectively.

Total cost of sales edged up 0.4% to $163.5 million as per-unit material and labor costs increased across all segments due to fixed cost deleverage and inflationary pressures. Selling and marketing expenses grew slightly to $6.1 million, or 3.2% of sales, driven by higher personnel costs. Meanwhile, general and administrative expenses decreased by 21.5% to $20.8 million, aided by lower legal fees, incentive compensation and stock-based expenses, trimming G&A to 11.0% of net sales. The company generated positive free cash flow in the quarter and repurchased $21 million of common stock under its opportunistic buyback program.

For fiscal 2026, Malibu Boats expects net sales to be flat to down mid-single digits compared to the prior year, with an Adjusted EBITDA margin projected between 8% and 9%. The company noted that it cannot reasonably forecast certain GAAP items such as vertical integration costs, stock-based compensation and litigation expenses, and therefore has not reconciled the EBITDA guidance to a GAAP equivalent. Management plans to balance capital allocation between growth initiatives, debt reduction and continued share repurchases.