v3.25.3
Segment Reporting
 3 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
We determine our operating segments based on how the Chief Operating Decision Maker (CODM), our Chief Executive Officer, manages the business, allocates resources, makes operating decisions and evaluates operating performance.
The Company has three reportable segments: Malibu, Saltwater Fishing and Cobalt. The Malibu segment participates in the manufacturing, distribution, marketing and sale of Malibu and Axis performance sports boats throughout the world. The Saltwater Fishing segment participates in the manufacturing, distribution, marketing and sale throughout the world of Pursuit boats and the Maverick Boat Group brand boats (Maverick, Cobia, Pathfinder and Hewes). The Cobalt segment participates in
the manufacturing, distribution, marketing and sale of Cobalt boats throughout the world. Separate financial information for the three reportable segments is evaluated by the CODM to allocate resources and assess performance. Segment asset and capital expenditure information is not presented because it is not evaluated by the CODM at the segment level.

Intersegment transactions are not considered significant and consist primarily of engines and other materials that are eliminated within the Malibu segment. Certain costs are incurred at the corporate level and are partially allocated to the Company’s segments. These costs generally include shared service functions such as information technology, digital marketing, finance and accounting and supply chain. Each allocation is measured based on each segment's proportionate budgeted net sales for the current fiscal year. The remaining unallocated corporate costs, as well as costs related to stock-based compensation, interest expense, professional fees and other corporate costs, are reported within Corporate expenses and other as a reconciling item to our consolidated results.

Our segment operating performance measure is Segment Adjusted EBITDA. The CODM uses Segment Adjusted EBITDA to evaluate segment operating performance, generate future operating plans, and make strategic decisions. Segment Adjusted EBITDA excludes interest expense, income taxes, depreciation, amortization and non-cash, non-recurring or non-operating expenses (as shown in the table below). These charges are excluded from the evaluation of segment performance because it facilitates reportable segment performance comparisons on a period-to-period basis as these costs may vary independent of business performance.

There is no country outside of the United States from which the Company (a) derived net sales equal to 10% of total net sales, or (b) attributed assets equal to 10% of total assets. Net sales are attributed to countries based on the location of the dealer. For information about how our reportable segments derive revenue, as well as revenue grouped by offerings and geographical region, refer to Note 2 – Revenue Recognition.
The following table presents financial information for the Company’s reportable segments for the three months ended September 30, 2025 and 2024.
Three Months Ended September 30, 2025
MalibuSaltwater FishingCobaltTotal
Net sales$78,647 $64,318 $51,768 $194,733 
Cost of sales (excluding depreciation)60,492 54,631 44,069 159,192 
Sales and marketing expense2,798 2,281 1,214 6,293 
General and administrative expense (excluding depreciation) 1
4,471 4,425 3,441 12,337 
Other segment items 2
(10)— — (10)
Segment Adjusted EBITDA10,896 2,981 3,044 16,921 
Reconciliation of segment adjusted EBITDA to loss before income taxes:
Corporate expenses and other 3
7,469 
Depreciation8,138 
Amortization1,713 
Loss before income taxes$(399)
Three Months Ended September 30, 2024
MalibuSaltwater FishingCobaltTotal
Net sales$56,019 $64,751 $50,810 $171,580 
Cost of sales (excluding depreciation)41,739 53,107 41,679 136,525 
Sales and marketing expense1,979 1,902 983 4,864 
General and administrative expense (excluding depreciation) 1
3,723 4,578 3,292 11,593 
Other segment items 2
(10)— — (10)
Segment Adjusted EBITDA8,588 5,164 4,856 18,608 
Reconciliation of segment adjusted EBITDA to loss before income taxes:
Corporate expenses and other 3
15,515 
Depreciation7,374 
Amortization1,716 
Loss before income taxes$(5,997)
1 The primary difference between this significant segment expense and “general and administrative expense” within the Company’s Condensed Consolidated Statements of Operations relates to stock-based compensation, professional fees and litigation settlements which all fall under the "corporate expenses and other" category discussed below.
2 Other segment items include other income.
3 Corporate expenses and other represents costs incurred at the corporate level that are not allocated to the operating segments, specifically relating to certain executive compensation including stock-based compensation, corporate professional fees, litigation settlements, interest expense, adjustments to tax receivable agreement, other corporate costs, and unallocated shared service function expenses. “Corporate expenses and other” is included in the table above to reconcile the total of Segment Adjusted EBITDA to the Company’s consolidated loss before income taxes.