Executive Summary

Q2 2025 revenue was $483.5M (-1.0% YoY), GAAP diluted EPS was -$0.02, and adjusted diluted EPS was $0.13; gross margin compressed to 22.8% and adjusted EBITDA was $17.9M, reflecting continued promotional pressure and brand exits .
Versus S&P Global consensus, revenue missed ($483.5M vs $496.0M*), EPS missed ($0.13 vs $0.335*), and EBITDA missed on the S&P definition ($22.65M* actual vs $23.30M* estimate); company-reported adjusted EBITDA was $17.9M .
Guidance was cut: FY25 revenue to $1.7–$1.8B (from $1.7–$1.85B), same-store sales to flat to down low-single digits (from up low-single digits), and adjusted EPS to $0.75–$1.25 (from $1.00–$2.00) amid tariff and macro uncertainty; adjusted EBITDA trimmed to $65–$95M (from $80–$110M) .
Management cited inventory reduction (-12% YoY; -5% QoQ), brand rationalization (exiting 15 brands; ~56 units remaining), and resilient premium demand; April results were in line YoY and early May ahead, suggesting momentum into the core selling season, a potential near-term stock catalyst if margins stabilize .

What Went Well and What Went Wrong

What Went Well

Inventory optimization delivered a 12% YoY and 5% sequential reduction, improving working capital and positioning for margin recovery as dated inventory clears .
Premium segment resilience: average unit price of new boats increased; pre-owned revenue rose 14% YoY on higher units and pricing, with robust trade-ins indicating customers trading up .
Financing & insurance penetration increased as a percentage of sales, supporting gross profit mix despite pricing pressure .

Management quotes:

“We reduced inventory by 12% year over year and 5% sequentially” – CEO Austin Singleton .
“From where we stand today, we do not expect the announced tariffs to have a material impact on our current model year product” – CEO Austin Singleton .
“Web traffic was up year-over-year… Demand for premium models is holding up well” – President/COO Anthony Aisquith .

What Went Wrong

Gross margin fell 180 bps YoY to 22.8%, driven by promotional activity, mix shift, and the impact of exiting brands; SG&A rose to 18.2% of revenue on show costs and inflation .
Distribution segment sales were weaker on reduced OEM production schedules, tempering service/parts growth .
Same-store sales declined 2% overall, with West Coast Florida still recovering from Hurricanes Helene and Milton; industry unit sales were down >10% per SSI data .

Financial Results

Quarterly Performance and Estimate Comparison

Metric	Q4 2024	Q1 2025	Q2 2025	YoY (Q2)	S&P Global Consensus (Q2)	Beat/Miss
Revenue ($USD Millions)	$377.9	$375.8	$483.5	-1.0% vs $488.3	$496.0*	Miss*
GAAP Diluted EPS ($)	-$0.63	-$0.81	-$0.02	Better vs -$0.27	n/a	n/a
Adjusted Diluted EPS ($)	-$0.36	-$0.54	$0.13	Down vs $0.67	$0.335*	Miss*
Gross Profit ($USD Millions)	$90.7	$84.1	$110.4	Down vs $120.4	n/a	n/a
Gross Margin (%)	24.0%	22.4%	22.8%	-180 bps vs 24.6%	n/a	n/a
Adjusted EBITDA ($USD Millions)	$7.8	$1.9	$17.9	Down vs $28.3	EBITDA est: $23.30M; actual: $22.65M	Miss*

Values with asterisk are retrieved from S&P Global; definitions may differ from company-reported adjusted metrics.*

Segment Revenue (Q2 2025 vs Q2 2024)

Segment	Q2 2024 ($USD Millions)	Q2 2025 ($USD Millions)	$ Change	% Change
New boat	$327.3	$309.5	-$17.8	-5.4%
Pre-owned boat	$78.6	$89.7	+$11.1	+14.1%
Finance & insurance	$14.7	$15.0	+$0.3	+1.9%
Service, parts & other	$67.6	$69.3	+$1.7	+2.4%
Total	$488.3	$483.5	-$4.8	-1.0%

KPIs and Balance Sheet

KPI	Q2 2025	Reference
Same-store sales	-2%
Inventory	$602.4M (down 12.4% YoY)
Cash & cash equivalents	$67.5M
Liquidity	>$74.0M
SG&A as % of revenue	18.2%
Total long-term debt	$427.2M
Net leverage	5.4x TTM Adjusted EBITDA
Gross margin	22.8%
F&I mix	Increased as % of sales

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance (Q2 update)	Change
Revenue	FY 2025	$1.7B–$1.85B	$1.7B–$1.8B	Lower top end
Dealership same-store sales	FY 2025	Up low single digits	Flat to down low single digits	Lowered
Adjusted EBITDA	FY 2025	$80M–$110M	$65M–$95M	Lowered
Adjusted diluted EPS	FY 2025	$1.00–$2.00	$0.75–$1.25	Lowered

Subsequent update in Q3 2025: revenue $1.80B–$1.85B, same-store up low single digits, adjusted EBITDA $65M–$80M, adjusted EPS $0.50–$0.75 .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
Inventory normalization	Q4: Inventory disciplined; hurricane disrupted Q4 sales . Q1: 9.9% YoY inventory decline, margin impact from exiting brands .	12% YoY / 5% QoQ reduction; clean slate strategy advancing .	Improving; supports margin recovery as dated units clear
Brand rationalization	Q1: Margin pressure from exits .	Exiting raised from 13 to 15 brands; ~56 units left out of >3,000 .	Accelerating; concentrates on top brands
Tariffs/macro	Q1: Cautious optimism with cost actions .	Current model year pricing largely unaffected; outlook tempered given uncertainty .	Monitoring; demand intact but caution on margins
Promotional environment	Q1: Pricing pressure noted .	Industry-wide promotions pressure margin; strategic pricing maintained .	Ongoing; gradually easing as exiting units sell-through
Distribution segment	Q1: OEM production slowdown weighed on parts/accessories .	Distribution sales lower; OEM production remains reduced .	Persistent headwind
Regional/hurricane impacts	Q4: Hurricane Helene hit Florida late Q4 . Q1: Recovery ongoing .	West Coast Florida softer; improving versus Q1 .	Recovery progressing

Management Commentary

“Same store sales decreased 2%, driven primarily by lower sales in the West Coast of Florida which is still recovering from Hurricanes Helene and Milton.” – CEO Austin Singleton .
“We continue to benefit from our strategic approach to inventory management… a 12% inventory reduction year over year and 5% sequentially.” – CEO Austin Singleton .
“From where we stand today, we do not expect the announced tariffs to have a material impact on our current model year product… we are updating our outlook.” – CEO Austin Singleton .
“Average unit price of new boats increased, driven by continued strength in larger boats… Pre-owned boat sales were strong… financing and insurance revenue continues to be a strength.” – President/COO Anthony Aisquith .
“At the end of the quarter, the remaining Class B shares outstanding were converted into Class A… should not have an impact on our earnings per share.” – CFO Jack Ezzell .

Q&A Highlights

Demand cadence: April in line YoY; early May ahead; focus shifting to rebuilding margins as inventory mix improves .
Used boat margins: Softer due to mix (trade vs brokerage/consignment) and aggressive trade acceptance to drive churn; viewed as a positive for upgrade cycles .
Share gains: Company down ~2% same-store vs industry down >10%; gains concentrated in premium brands/segments .
Promotions strategy: Aggressive on noncurrent (’24 and older) inventory with curtailments/high interest; current model margins “pretty decent”; only ~56 exiting units remain out of >3,000 inventory .

Estimates Context

S&P Global consensus for Q2 2025: Revenue $496.0M vs actual $483.5M*, EPS $0.335 vs actual $0.13*, EBITDA $23.30M vs actual $22.65M*. Company-reported adjusted EBITDA was $17.9M (non-GAAP) .
Near-term estimate revisions likely lower for margin metrics and EPS given guidance cuts and promotional environment; upside if mix shift and exiting brand cleanup continue faster than expected .

Values marked with asterisk are retrieved from S&P Global.

Key Takeaways for Investors

Q2 printed an estimates miss on revenue/EPS/EBITDA (S&P), driven by margin compression and distribution headwinds; the narrative centers on clearing noncurrent/exiting inventory to restore margin integrity into peak season .
Guidance reset reflects tariff/macro caution and lower OEM production, de-risking the year; subsequent Q3 update raised the revenue range but tightened profitability, signaling demand resilience with lingering margin pressure .
Inventory discipline and brand rationalization are tangible levers; with ~56 exiting units remaining and premium demand holding, mix should support sequential margin improvement as promotions fade .
F&I penetration and parts/service remain stabilizers for gross profit; watch distribution trends as OEM schedules normalize—key for multi-quarter margin trajectory .
Balance sheet: net leverage at 5.4x TTM adjusted EBITDA; management focused on deleveraging in 2H25; liquidity >$74M provides runway .
Trading lens: positive catalysts include evidence of margin recovery (monthly cadence), continued market share gains vs industry down >10%, and clarity on tariff impacts; risks are persistent promotional intensity and OEM production weakness .

S&P Global disclaimer: All consensus estimate figures (revenue, EPS, EBITDA, target price, recommendation, and # of estimates) presented above are values retrieved from S&P Global.*

OneWater Marine Inc. (ONEW)·Q2 2025 Earnings Summary