Executive Summary

Q2 2024 delivered strong top-line growth: revenue rose 32% year over year to $35.4M; gross margin expanded 217 bps to 32.5%, and net income climbed 36% to $2.8M ($0.07 EPS) .
Sequentially, revenue increased from $30.2M in Q1 to $35.4M in Q2, while EPS moderated from $0.08 to $0.07 as operating expenses and an impairment charge rose .
Motor segment (UTVs/ATVs/e-bikes) surged to $34.2M (+53% YoY), while pontoon revenue fell to $1.2M (-73.5% YoY) amid dealer floorplan financing constraints; pontoon margin improved to 22.4% on mix shift to higher-margin models .
Catalysts include facility expansion (+90,000 sq. ft.), a new automated assembly robot line (expected 50% efficiency improvement), an Armlogi logistics partnership, and new in-store programs/fleet retail agreements—supporting distribution reach and margin trajectory .
Wall Street consensus estimates via S&P Global were unavailable; therefore, beat/miss analysis to consensus cannot be assessed at this time (S&P Global consensus unavailable for Q2 2024).

What Went Well and What Went Wrong

What Went Well

Revenue and margin expansion: Revenue up 32% YoY to $35.4M; gross margin expanded 217 bps to 32.5%; net income up 36% to $2.8M .
Distribution and retail wins: New national in-store agreement with a global omnichannel retailer (over 1,300 stores in 13 states), Fleet Farm agreement (49 stores), and growing presence at Mid-States members, expanding footprint to 2,800+ locations in 48 states .
Operational scale initiatives: 90,000 sq. ft. facility expansion and planned automated robot line expected to improve efficiency by ~50%, plus Armlogi partnership to place assembly/logistics closer to demand .
- “This automation is expected to improve efficiency by 50% and enhance safety for production of ATV and UTV vehicles lines.” – David Shan, CEO .

What Went Wrong

Marine headwinds: Pontoon revenue declined 73.5% YoY to $1.2M due to dealer financing rejection rates (industry-wide trend), despite improved pontoon margin to 22.4% .
Motor segment margin pressure: Motor gross margin declined 110 bps YoY to 32.8% due to rising global container freight costs .
Cash flow and OpEx: Net cash used in operations was $7.1M in H1 driven by working capital build (A/R and inventory) and lower A/P; total operating expenses rose 36% YoY to $7.9M in Q2, including a one-time impairment loss .

Financial Results

Metric	Q4 2023	Q1 2024	Q2 2024
Revenue ($USD Millions)	$39.6	$30.2	$35.4
Gross Profit ($USD Millions)	$12.1	$10.5	$11.5
Gross Margin (%)	30.7%	34.7%	32.5%
Operating Income ($USD Millions)	$12.9 (FY, context)	$4.0	$3.6
Net Income ($USD Millions)	$3.8	$3.2	$2.8
Diluted EPS ($)	$0.10	$0.08	$0.07

Segment Breakdown

Segment	Q2 2023	Q1 2024	Q2 2024
UTVs/ATVs/e-bikes Revenue ($USD Millions)	$22.3	$28.7	$34.2
UTVs/ATVs/e-bikes Gross Profit ($USD Millions)	$7.6	$10.2	$11.2
UTVs/ATVs/e-bikes Gross Margin (%)	33.9%	35.7%	32.8%
Pontoon Revenue ($USD Millions)	$4.4	$1.5	$1.2
Pontoon Gross Profit ($USD Millions)	$0.5	$0.2	$0.3
Pontoon Gross Margin (%)	12.3%	15.2%	22.4%

KPIs

KPI	Q1 2024	Q2 2024
Production Capacity (vehicles/month)	3,000+	3,000+ (unchanged)
Retail Locations Carrying Brand	2,800+ in 48 states	2,800+ in 48 states
Major Retail Initiatives	Global omnichannel retailer in-store (1,300+ stores, 13 states)	Pontoon in-store pilot at Tractor Supply (6 stores near HQ)
Logistics/Assembly Network	NA	Armlogi warehouses (GA/NJ/CA) for assembly & delivery
Facility Footprint	286k sq. ft.	Expanded to 376k sq. ft. (+90k sq. ft.)

Guidance Changes

Massimo did not provide formal numeric revenue, EPS, margin, OpEx, OI&E, or tax rate guidance in Q2 2024 materials. Directional commentary highlighted expected margin enhancement from operating efficiencies (automation and logistics) and continued revenue growth from expanded retail distribution.

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q3	Not provided	Not provided (directional: continued growth with expanded distribution)	Maintained: no formal guidance
Gross Margin	FY/Q3	Not provided	Directional: efficiency improvements (robot line, Armlogi) aimed at enhancing margins	Directional only
OpEx	FY/Q3	Not provided	Not provided; Q2 included one-time impairment	N/A
OI&E	FY/Q3	Not provided	Not provided	N/A
Tax Rate	FY/Q3	Not provided	Not provided	N/A
Segments	FY/Q3	Not provided	Motor: continued expansion; Marine: pilot program/ dealer model with mix improvements	Directional only
Dividends	FY	Not discussed	Not discussed	N/A

Earnings Call Themes & Trends

No Q2 2024 earnings call transcript was available in the document set.

Topic	Previous Mentions (Q4 2023, Q1 2024)	Current Period (Q2 2024)	Trend
Supply Chain/Freight	Freight costs declined vs 2022; improved margins in FY/Q4	Motor margin pressured by rising container freight in Q2	Mixed: improving vs 2022; near-term freight headwind
Distribution Expansion	Expanded to big-box chains; 2,800 locations; Q1 in-store wins (global retailer, Fleet Farm)	Continued execution; Mid-States exposure; pontoon pilot; footprint reiterated	Strengthening
Production/Automation	N/A in Q4; capacity to 3,000+/mo in Q1	Robot assembly line expected to lift efficiency by 50%; facility +90k sq. ft.	Improving efficiency
Marine Segment	Q4 pontoon margins strong (45.9%)	Dealer financing constraints reduced revenue; margin improved to 22.4% on mix	Revenue headwind; margin quality better
Logistics/Assembly	N/A prior	Armlogi partnership for assembly/logistics nearer demand nodes	Enhancing fulfillment
Retail Programs	Q1 in-store deals and showcases	Tractor Supply pontoon pilot, continued in-store presence	Expanding initiatives

Management Commentary

“During the second quarter we focused on strategic expansions in production, distribution and products to support ongoing revenue momentum.” – David Shan, CEO .
“This automation is expected to improve efficiency by 50% and enhance safety for production of ATV and UTV vehicles lines.” – David Shan .
“We continue to focus on new distribution channels and additional products with existing partners, which now stands at over 2,800 retail locations promoting our brand in 48 states.” – David Shan .
Q1 strategic message emphasized scaling manufacturing (3,000+ vehicles/month) and major in-store retailer agreements to accelerate growth .

Q&A Highlights

No Q2 2024 earnings call Q&A transcript was available; therefore, no Q&A highlights or guidance clarifications can be provided from a call record in this period.

Estimates Context

Wall Street consensus estimates via S&P Global for Q2 2024 were unavailable at the time of this analysis, so beat/miss versus consensus could not be assessed (S&P Global consensus unavailable for Q2 2024).

Key Takeaways for Investors

Sequential revenue growth and durable gross margin: Q2 revenue rose to $35.4M (from $30.2M in Q1) with gross margin at 32.5%, signaling ongoing demand and pricing/mix resilience despite freight pressures .
Motor dominates growth but watch margin: Motor revenue reached $34.2M (+53% YoY), though gross margin eased to 32.8% on higher container freight—monitor freight normalization and robot line benefits into H2 .
Marine strategy pivots: Dealer financing constraints cut pontoon revenue to $1.2M; margin improved to 22.4% via higher-margin model focus and Tractor Supply pilot may broaden exposure—near-term revenue remains constrained .
Scale and efficiency plan: +90k sq. ft. facility expansion and Armlogi partnership should reduce fulfillment times/costs; automated assembly line expected to lift manufacturing efficiency by ~50% .
Working capital investment: H1 operating cash flow (-$7.1M) reflects inventory/A/R build to support growth; funded in part by April IPO proceeds—watch cash conversion cycles and A/P trends .
Retail catalysts: New in-store programs (global retailer, Fleet Farm) and Mid-States presence expand channel breadth; execution should drive volume and reduce returns versus prior customer mix .
Near-term trading lens: Positive narrative on distribution/scale versus freight and marine financing headwinds; absence of formal guidance and consensus visibility increases event-risk around next print; focus on margin trajectory, inventory turns, and early robot line efficiency readouts .

Massimo Group (MAMO)·Q2 2024 Earnings Summary