Off The Hook Yachts Reports Record 2025 Results, Raises 2026 Guidance Following IPO Completion

Key Financial and Operational Highlights for 2025

• Record Full-Year Revenue: \$119.9 million, up 21.1% year-over-year.
• Record Boat Sales: 426 boats sold in 2025, up 33% from 2024.
• Accelerated Q4 Growth: Q4 revenue of \$37.3 million, up 25.2%; 117 boats sold in Q4, up 62.5%.
• Gross Profit Surge: Full-year gross profit increased 30.6% to \$11.5 million; Q4 gross profit up 63.2% to \$3.1 million.
• Cash Reserves Strengthened: \$12.4 million in cash as of December 31, 2025, up from \$2.93 million on September 30, 2025.
• Successful IPO: Raised approximately \$13.4 million in net proceeds in November 2025.
• 2026 Revenue Guidance Raised: Now expecting \$150–\$155 million, up from prior \$140–\$145 million guidance.

Detailed Financial Performance

Revenue and Sales Performance

• 2025 revenue rose to \$119.9 million from \$99.0 million in 2024, driven by higher floorplan limits and expanded inventory financing capacity.
• Pre-owned boat sales reached \$101.7 million, up 20% from 2024, with 426 pre-owned boats sold versus 321 last year.
• Average sale price per pre-owned boat decreased to \$449,420 from \$509,694, reflecting a broader range of inventory and sales arrangements.
• New boat sales grew 32% to \$14.5 million, with 21 new boats sold (up from 17 in 2024).
• Finance-related revenue through Azure Funding was \$2.6 million, down from \$3.0 million, due to a higher mix of cash purchases and elevated marine loan interest rates.

Profitability and Margins

• Gross profit margin increased to 9.6% (from 8.9% in 2024) reflecting improved inventory sourcing and purchasing strategies.
• Pre-owned boat gross profit up 32.1% to \$8.4 million; new boat gross profit up to \$0.8 million.
• Azure Finance gross profit was \$1.5 million, down from \$1.7 million last year.

Operating Expenses and Net Income

• Operating expenses rose sharply to \$10.7 million (from \$5.8 million), due to increased marketing, infrastructure investments, and \$1.8 million in stock-based compensation post-IPO.
• Net loss for 2025 was \$1.47 million, versus net income of \$1.0 million in 2024. The loss was primarily due to higher operating expenses and public company costs.
• Adjusted EBITDA was \$0.5 million, compared to \$1.2 million in 2024.
• Interest expense related to floorplan financing rose to \$1.9 million (from \$1.1 million) on higher facility utilization.

Balance Sheet Strength

• Cash and cash equivalents jumped to \$12.4 million as of year-end, mainly due to IPO proceeds.
• Working capital improved to \$9.4 million, reversing a negative \$0.4 million position at the end of 2024.
• Total assets increased to \$48.4 million (from \$31.6 million), while total liabilities were \$36.2 million, mainly due to \$25.3 million in floorplan notes payable.

Strategic and Operational Developments

• Expanded national broker network and launched Autograph Yacht Group, supporting ongoing double-digit growth.
• Vertically integrated model combining brokerage, wholesale, financing (Azure Funding), and a growing premier division continues to differentiate OTH in the market.
• Company expects operating expenses as a percentage of revenue to decline as it scales and achieves operating leverage, especially with higher-margin businesses like Azure Finance.
• Plans underway to increase the attachment rate of Azure financing with boat sales, aiming to build out this high-margin business internally.

2026 Outlook

• Raised 2026 Revenue Guidance: Now expecting annual revenue of \$150–\$155 million, up from previous guidance of \$140–\$145 million—a signal of management’s confidence in continued growth.
• Company believes current cash, cash flow, and financing capacity are sufficient to support planned growth investments.

Shareholder/Price-Sensitive Information

• The sharp increase in revenue, boat sales, cash reserves, and the raising of guidance for 2026 are all potentially share price-positive catalysts.
• The successful IPO, strengthening the balance sheet and liquidity, signals the Company’s ability to fund expansion and weather market fluctuations.
• However, the year-over-year swing from net income to a net loss—primarily due to higher public company costs and investments—may be viewed as a short-term negative, though management expects expense leverage as growth continues.
• Investors should monitor the Company’s ability to drive high-margin finance revenue and maintain gross margin improvements.
• Any failure to meet the newly raised revenue guidance or inability to control operating expenses could negatively affect share value.

Conference Call Details

Off The Hook Yachts will host an earnings call on March 30, 2026, at 4:30 P.M. EST. Investors can participate by dialing (800) 715-9871 (domestic) or (646) 307-1963 (international), passcode 5863262, or by visiting the company’s Investor Relations page.

About Off The Hook Yachts

Founded in 2012 and headquartered in Wilmington, NC, Off The Hook YS Inc. is the nation’s largest buyer and seller of used boats. The company leverages proprietary technology, deep transaction data, and a national acquisition network to drive speed and transparency across the marine market. Their ecosystem includes Autograph Yacht Group, Azure Funding, and proprietary lead-generation platforms. Off The Hook is rapidly expanding within the \$57 billion U.S. marine industry.

Disclaimer: This article is for informational purposes only. It does not constitute investment advice. Investors should conduct their own due diligence or consult a qualified financial advisor before making investment decisions. Forward-looking statements in company communications are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated.

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