# MasterCraft Boat Holdings, Inc. (MCFT) Q4 2025 Financial Results Summary
On August 27, 2025, MasterCraft Boat Holdings, Inc. (NASDAQ: MCFT) announced its financial results for the fourth quarter and year ended June 30, 2025. Below is a summary of the reported results:
## Fourth Quarter Overview
– **Net Sales:** $79.5 million, an increase of $25.2 million, or **46.4%**, compared to Q4 of fiscal 2024.
– **Income from Continuing Operations:** $5.5 million, or $0.33 per diluted share, compared to $0.3 million, or $0.02 per diluted share, in the prior year.
– **Adjusted Net Income:** $6.6 million, or $0.40 per diluted share, compared to $0.6 million, or $0.04 per diluted share, in the prior year.
– **Adjusted EBITDA:** $9.5 million, up $8.0 million from the prior-year period, representing an increase in adjusted EBITDA margin to **12.0%** from **2.9%**.
– **Gross Margin Percentage:** Increased by **740 basis points** compared to the prior-year period.
– **Operating Expenses:** Increased by $3.3 million due to higher variable compensation, sales and marketing costs, and administrative expenses.
– **Share Repurchases:** $4.5 million during the quarter.
## Full Year Overview
– **Net Sales:** $284.2 million, down **$38.1 million**, or **11.8%**, from fiscal 2024.
– **Income from Continuing Operations:** $10.7 million, or $0.65 per diluted share, compared to $23.2 million, or $1.36 per diluted share, in fiscal 2024.
– **Adjusted Net Income:** $15.1 million, or $0.92 per diluted share, down from $28.9 million, or $1.69 per diluted share, the previous year.
– **Adjusted EBITDA:** $24.4 million, down **$15.8 million** from the prior year, with an adjusted EBITDA margin of **8.6%**, compared to **12.5%** a year earlier.
– **Net Cash Provided by Operating Activities:** $38.2 million.
– **Free Cash Flow:** $29.0 million; ended the year with cash and investments totaling $79.4 million.
– **Revolving Credit Facility Availability:** $100 million, with no outstanding debt.
## Additional Insights
– The decline in annual net sales was attributed to planned reductions in production to align dealer inventories, resulting in approximately **30% lower dealer inventory levels** compared to the previous year.
– The gross margin percentage declined **220 basis points** for the full year due to decreased production volume, inflation in material and overhead costs, and changes in sales pricing.
– Operating expenses for the full year increased by $1.5 million largely due to variable compensation increases.
## Outlook for Fiscal 2026
– For full-year fiscal 2026, MasterCraft expects consolidated net sales to be between **$295 million and $310 million**.
– Expected adjusted EBITDA is projected to fall between **$29 million and $34 million**.
– Anticipated adjusted earnings per share for the year is between **$1.15 and $1.40**.
– Capital expenditures for the year are anticipated to be approximately **$9 million**.
– In the first quarter of fiscal 2026, consolidated net sales are expected to be approximately **$67 million**, with adjusted EBITDA projected at approximately **$4 million**.
## Conclusion
MasterCraft Boat Holdings, Inc. demonstrated significant growth in sales during Q4 2025 compared to the same quarter one year ago, while the overall annual performance reflected challenges in the manufacturing landscape and dealer inventory levels. The company’s disciplined approach to capital allocation allowed for share repurchase activities and a solid cash position heading into the next fiscal year.
| Three Months Ended | Year Ended | June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 |
|---|---|---|---|---|---|
| Net sales | $79,516 | $54,318 | $284,203 | $322,351 | |
| Cost of sales | 61,106 | 45,713 | 227,338 | 250,741 | |
| Gross profit | 18,410 | 8,605 | 56,865 | 71,610 | |
| Operating expenses: | |||||
| Selling and marketing | 3,197 | 2,498 | 11,740 | 11,203 | |
| General and administrative | 8,835 | 6,249 | 32,093 | 31,119 | |
| Amortization of other | 450 | 450 | 1,800 | 1,812 | |
| intangible assets | |||||
| Total operating expenses | 12,482 | 9,197 | 45,633 | 44,134 | |
| Operating income (loss) | 5,928 | (592) | 11,232 | 27,476 | |
| Other income (expense): | |||||
| Interest expense | — | (798) | (1,169) | (3,292) | |
| Interest income | 823 | 1,625 | 3,472 | 5,789 | |
| Income before income tax | 6,751 | 235 | 13,535 | 29,973 | |
| expense | |||||
| Income tax expense (benefit) | 1,299 | (70) | 2,820 | 6,730 | |
| Income from continuing | 5,452 | 305 | 10,715 | 23,243 | |
| operations | |||||
| Income (loss) from discontinued | 245 | (8,341) | (3,672) | (15,443) | |
| operations, net of tax | |||||
| Net income (loss) | $5,697 | (8,036) | $7,043 | $7,800 | |
| Income (loss) per share | |||||
| Basic | |||||
| Continuing operations | $0.33 | $0.02 | $0.65 | $1.37 | |
| Discontinued operations | 0.02 | (0.50) | (0.22) | (0.91) | |
| Net income (loss) | $0.35 | (0.48) | $0.43 | $0.46 | |
| Diluted | |||||
| Continuing operations | $0.33 | $0.02 | $0.65 | $1.36 | |
| Discontinued operations | 0.02 | (0.50) | (0.22) | (0.90) | |
| Net income (loss) | $0.35 | (0.48) | $0.43 | $0.46 | |
| Weighted average shares used | |||||
| for | |||||
| computation of: | |||||
| Basic earnings per share | 16,299,885 | 16,710,544 | 16,428,485 | 16,930,348 | |
| Diluted earnings per share | 16,440,388 | 16,710,544 | 16,525,773 | 17,038,305 |
| ASSETS | June 30, 2025 | June 30, 2024 |
|---|---|---|
| CURRENT ASSETS: | ||
| Cash and cash equivalents | $28,926 | $7,394 |
| Short-term investments | 50,518 | 78,846 |
| Accounts receivable, net of allowances of $156 and $101, respectively | 4,086 | 11,455 |
| Income tax receivable | 208 | 499 |
| Inventories, net | 30,469 | 36,972 |
| Prepaid expenses and other current assets | 7,006 | 8,686 |
| Current assets associated with discontinued operations | — | 11,222 |
| Total current assets | 121,213 | 155,074 |
| Property, plant and equipment, net | 53,576 | 52,314 |
| Goodwill | 28,493 | 28,493 |
| Other intangible assets, net | 31,850 | 33,650 |
| Deferred income taxes | 18,914 | 18,584 |
| Other long-term assets | 5,902 | 8,189 |
| Non-current assets associated with discontinued operations | — | 21,680 |
| Total assets | $259,948 | $317,984 |
| LIABILITIES AND EQUITY | ||
| CURRENT LIABILITIES: | ||
| Accounts payable | $8,255 | $10,431 |
| Income tax payable | 1,773 | — |
| Accrued expenses and other current liabilities | 55,182 | 55,068 |
| Current portion of long-term debt, net of unamortized debt issuance costs | — | 4,374 |
| Current liabilities associated with discontinued operations | — | 8,063 |
| Total current liabilities | 65,210 | 77,936 |
| Long-term debt, net of unamortized debt issuance costs | — | 44,887 |
| Unrecognized tax positions | 9,067 | 8,549 |
| Other long-term liabilities | 2,085 | 2,551 |
| Long-term liabilities associated with discontinued operations | — | 182 |
| Total liabilities | 76,362 | 134,105 |
| COMMITMENTS AND CONTINGENCIES | ||
| EQUITY: | ||
| Common stock, $.01 par value per share — authorized, 100,000,000 shares; issued and outstanding, 16,406,788 shares at June 30, 2025 and 16,759,109 shares at June 30, 2024 | 164 | 167 |
| Additional paid-in capital | 52,559 | 59,892 |
| Retained earnings | 130,663 | 123,620 |
| MasterCraft Boat Holdings, Inc. equity | 183,386 | 183,679 |
| Noncontrolling interest | 200 | 200 |
| Total equity | 183,586 | 183,879 |
| Total liabilities and equity | $259,948 | $317,984 |
