v3.26.1
Income Taxes
 12 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
MBI is taxed as a C corporation for U.S. income tax purposes and is therefore subject to both federal and state taxation at a corporate level. The LLC continues to operate in the United States as a partnership for U.S. federal income tax purposes. Maverick Boat Group is separately subject to U.S. federal and state income tax with respect to its net taxable income. Saxdor files income tax returns in Finland and Poland.
Income taxes are computed in accordance with ASC Topic 740, Income Taxes, and reflect the net tax effects of temporary differences between the financial reporting carrying amounts of assets and liabilities and the corresponding income tax amounts. The Company has deferred tax assets and liabilities and maintains valuation allowances where it is more likely than not that all or a portion of deferred tax assets will not be realized. To the extent the Company determines that it will not realize
the benefit of some or all of its deferred tax assets, such deferred tax assets will be adjusted through the Company’s provision for income taxes in the period in which this determination is made.
On August 16, 2022, the Inflation Reduction Act of 2022 (the “Inflation Reduction Act”) was signed into law. The Inflation Reduction Act contains significant business tax provisions, including an excise tax on stock buybacks (1% for transactions beginning January 1, 2023), increased funding for IRS tax enforcement, expanded energy incentives promoting clean energy investment, and a 15% corporate minimum tax on certain large corporations. The effects of the new legislation were recognized upon enactment. The Company accrued $0.3 million excise tax for stock repurchases during fiscal years ended June 30, 2026. The Company did not recognize any significant impact to income tax expense for the fiscal years ended June 30, 2026 or June 30, 2025 relating to the Inflation Reduction Act.
On July 4, 2025, the U.S. enacted H.R. 1 "A bill to provide for reconciliation pursuant to Title II of H. Con. Res. 14", commonly referred to as the One Big Beautiful Bill Act ("OB3"). OB3 contains a broad range of provisions affecting businesses, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, including provisions related to bonus depreciation and research and development expensing, as well as modifications to foreign derived intangible income and the restoration of other favorable tax provisions. The legislation has multiple effective dates, with certain provisions, including elective 100% bonus depreciation for assets placed in service after January 19, 2025, with many others generally not effective until 2026 through 2027. The effects of the new legislation are recognized upon enactment. In accordance with OB3, the Company remeasured certain of its deferred tax assets for the twelve months ended June 30, 2026.
The components of income taxes (benefit) are as follows:
Fiscal Year Ended June 30,
202620252024
Income/(loss) from continuing operations before income tax expense/(benefit):
Domestic7,186 18,280 (58,677)
Foreign (4,739)1,983 892 
Total2,447 20,263 (57,785)
Current tax expense (benefit):
     Federal$(529)$715 $2,358 
     State(169)(17)424 
     Foreign1,525 774 345 
          Total current827 1,472 3,127 
Deferred tax expense (benefit):
     Federal1,691 3,641 (3,872)
     State615 18 (577)
     Foreign(2,393)(108)(20)
          Total deferred(87)3,551 (4,469)
Income tax expense (benefit)$740 $5,023 $(1,342)
The income tax expense (benefit) differs from the amount computed by applying the federal statutory income tax rate to income (loss) from continuing operations before income taxes. The sources and tax effects of the differences, presented for all comparative periods in accordance with ASU No. 2023-09, are as follows:
Fiscal Year Ended June 30,
202620252024
US federal statutory income tax rate514 21.0%4,255 21.0%(12,135)21.0%
Domestic federal:
Effect of changes in tax laws or rates enacted during current period325 13.3%— —%— —%
Research credits(1,094)(44.7)%(456)(2.3)%(695)1.2%
Nontaxable or nondeductible items
Impairment charges - Maverick— —%— —%10,330 (17.9)%
Permanent differences attributable to partnership investment167 6.8%145 0.7%624 (1.1)%
Certain federal tax code limitations421 17.2%222 1.1%(163)0.3%
Restricted Stock (Windfall)/Shortfall379 15.5%255 1.3%337 (0.6)%
Changes in prior year unrecognized tax benefits(268)(11.0)%(134)(0.7)%(52)0.1%
Other(92)(3.7)%18 0.1%370 (0.7)%
Domestic state and local income taxes, net of federal effect(a)269 11.0%492 2.4%(91)0.2%
Finland(129)(5.3)%— —%— —%
Poland89 3.6%— —%— —%
Australia159 6.5%226 1.2%133 (0.2)%
Total Foreign119 4.8%226 1.2%133 (0.2)%
Total income (benefit) tax on continuing operations$740 30.2 %$5,023 24.8 %$(1,342)2.3 %
(a) State taxes in Florida and Kansas made up the majority (greater than 50 percent) of the tax effect in this category


The table below summarizes income taxes paid (net of refunds) by significant jurisdiction:
As of Fiscal Year Ended June 30,
(in thousands)202620252024
Cash paid for income taxes, net of refunds received:
US federal$(369)$250 $305 
US state and local
Alabama*(100)259 
California*(90)*
Florida(125)*443 
Kansas(176)(79)*
Maine(52)**
Michigan(71)**
Minnesota*(165)*
Tennessee(239)(715)*
Texas78 67 220 
Other10 2 298 
Total State(575)(1,080)1,220 
Foreign
Finland645n/an/a
Poland584n/an/a
Australia620175600 
Total Foreign1,849 175 600 
Total$905 $(655)$2,125 
*    The amount of income taxes paid, net of refunds received during the year does not meet the 5% disaggregation threshold.
The components of the Company's net deferred income tax assets and liabilities at June 30, 2026 and 2025 are as follows:

As of June 30,
20262025
Deferred tax assets:
Partnership basis differences$29,036 $36,947 
Accrued liabilities and reserves4,329 1,753 
State tax credits and NOLs15,287 14,096 
Foreign tax credits580 580 
National NOL and Credits23,163 18,942 
Other418 774 
     Less valuation allowance(17,571)(17,485)
     Total deferred tax assets55,242 55,607 
Deferred tax liabilities:
Fixed assets and intangibles17,675 18,652 
Other2,572 28 
     Total deferred tax liabilities20,247 18,680 
     Total net deferred tax assets$34,995 $36,927 
On an annual basis, the Company performs a comprehensive analysis of all forms of positive and negative evidence to determine whether realizability of deferred tax assets is more likely than not. During each interim period, the Company updates its annual analysis for significant changes in the positive and negative evidence. At June 30, 2026 and 2025, the Company concluded that $17,571 and $17,485, respectively, of valuation allowance against deferred tax assets was necessary. The Company continues to record the valuation allowance against the deferred tax asset generated by the state impact of the 743(b) amortization and on state net operating losses generated by current and future amortization deductions (with respect to the Section 754 election) that are reported in the Tennessee corporate tax return without offsetting income, which is taxable at the LLC. These net operating losses have a 15 year carryover and will expire, if unused, between 2030 and 2041. This also includes a valuation allowance in the amount of $580 related to foreign tax credit carryforward that is not expected to be utilized in the future, which will expire, if unused, in 2028.
Unrecognized tax benefits are discussed in the Company's accounting policy for income taxes (Refer to Note 1 on Income Taxes for more information). The Company has filed federal and state income tax returns that remain open to examination for fiscal years 2023 through 2025, while its subsidiaries, the LLC and Malibu Boats Pty Ltd., remain open to examination for fiscal years 2022 through 2025. Saxdor income tax returns remain open to examination for calendar years 2020 to 2025.
A reconciliation of changes in the amount of unrecognized tax benefits for the fiscal years ended June 30, 2026, 2025 and 2024 is as follows:
Fiscal Year Ended June 30,
202620252024
Balance as of July 1$1,787 $1,796 $1,718 
Additions based on tax positions taken during the current period142 126 129 
Reductions due to statute settlements(301)(171)(130)
Additions for tax positions of prior years33 36 79 
Balance as of June 30$1,661 $1,787 $1,796 
In fiscal year 2026, the Company reduced its uncertain tax positions by $301 as a result of statute settlements, and recorded $142 in connection with its current year state filing positions. Of the total unrecognized tax benefits recorded on the consolidated balance sheets, $1,444 would impact the effective tax rate once settled.
As discussed in Note 1 to the Consolidated Financial Statements, the Company's policy is to accrue interest related to potential underpayment of income taxes within the provision for income taxes. At June 30, 2026, the Company had $609 of accrued interest related to unrecognized tax benefits.
The Company did not provide for U.S. federal, state income taxes or foreign withholding taxes in fiscal year 2026 on the outside basis difference of its non-U.S. subsidiary, as such foreign earnings are considered to be permanently reinvested. The estimated income and withholding tax liability associated with the remittance of these earnings is nominal.