Off The Hook Yachts Posts Record 2025 Financials, Raises 2026 Revenue Guidance Following Successful IPO

Key Highlights

• Record Revenue and Sales: 2025 revenue reached \$119.9 million, up 21.1% year-over-year, with a record 426 boats sold (up 32.7% YOY).
• Raised 2026 Guidance: 2026 revenue now projected at \$150–\$155 million, increased from previous \$140–\$145 million guidance.
• IPO Completed: Raised approximately \$13.4 million in net proceeds in November 2025, significantly improving liquidity and working capital.
• Strong Q4 Performance: Q4 2025 revenue grew 25.2% to \$37.3 million, with a record 117 boats sold (+62.5% YOY); gross profit up 63.2% to \$3.1 million.
• Cash and Working Capital Surge: Cash at \$12.4 million (up from \$2.9 million at September 30, 2025); working capital improved to \$9.4 million from negative \$0.4 million at end of 2024.
• Net Loss Driven by IPO Costs: 2025 net loss of \$1.87 million (vs. \$1.0 million net income in 2024), primarily due to increased operating expenses and \$1.8 million in stock-based compensation.
• Adjusted EBITDA: \$0.44 million, down from \$1.25 million in 2024 due to higher growth-related costs.

Detailed Financial and Operating Review

2025 Full-Year Performance

Off The Hook Yachts Inc. (NYSE American: OTH), the largest pre-owned boat buyer and seller in the U.S., delivered outstanding growth in 2025. Revenue surged 21.1% to a record \$119.9 million, fueled by robust sales of pre-owned and new boats. The company sold 426 boats in 2025 (up 32.7% YOY), including 21 new boats and 405 pre-owned boats.

Pre-owned boat sales were the main engine, climbing 20% to \$101.7 million, though the average price per boat fell to \$449,420 from \$509,694, reflecting a shift in sales mix. New boat sales also increased sharply, up 32% to \$14.5 million, driven by enhanced marketing and a strategic focus on select brands.

Revenue from finance-related activities (Azure Funding) was \$2.6 million, down from \$3.0 million in 2024, due primarily to a higher share of cash buyers and persistently high marine loan interest rates. Importantly, the company sees an opportunity to increase the attachment rate of its in-house financing going forward.

Gross profit rose 30.6% to \$11.5 million, with margin expanding to 9.6% from 8.9% a year ago, reflecting both higher volumes and improved inventory sourcing, especially in pre-owned boats. Pre-owned gross profit jumped 32.1% to \$8.4 million, and new boat gross profit increased modestly to \$0.8 million.

However, operating expenses more than doubled to \$10.7 million (from \$5.8 million), reflecting significant investments in marketing, infrastructure, and public company costs following the IPO. Notably, \$1.8 million was due to stock-based compensation. As a result, the company posted a net loss of \$1.87 million versus net income of \$1.0 million in 2024. Adjusted EBITDA fell to \$0.44 million from \$1.25 million as the cost base increased to support future growth.

Q4 2025 Performance

• Revenue: \$37.3 million (+25.2% YOY)
• Boats Sold: 117 (+62.5% YOY)
• Gross Profit: \$3.1 million (+63.2% YOY)
• Operating Expenses: \$4.9 million (up from \$1.8 million in Q4 2024), primarily due to growth investments and public company costs
• Floor Plan Interest Expense: \$578k (vs. \$482k in Q4 2024)
• Finance-Related Revenue: \$0.82 million (slightly down from \$0.845 million YOY)

Balance Sheet and Liquidity

• Cash: \$12.4 million at December 31, 2025 (up from \$2.9 million at September 30, 2025)
• Working Capital: \$9.4 million (vs. negative \$0.4 million at December 31, 2024)
• Total Assets: \$48.4 million (up from \$31.6 million YOY)
• Total Liabilities: \$36.6 million (mainly \$25.3 million in floorplan notes payable)
• Stockholders’ Equity: \$11.8 million (up from \$967k at end of 2024)

The completion of the IPO in November 2025 and the resulting \$13.4 million in net proceeds have substantially strengthened the company’s balance sheet, providing ample liquidity for planned investments and growth initiatives.

2026 Outlook and Guidance

Management now expects full-year 2026 revenue to be between \$150 million and \$155 million, an increase from the previous \$140–\$145 million range. This confidence is based on an expanded broker network, greater floor plan capacity, and a growing national presence. The company also aims to increase the attachment rate of its high-margin Azure financing products and drive further operating leverage as it scales.

The company believes that its vertically integrated model—combining brokerage, wholesale inventory, financing, and a premier brokerage division—positions it for continued double-digit growth despite a challenging macro environment for discretionary purchases.

Price-Sensitive and Shareholder-Relevant Information

• Raised Revenue Guidance: The upgraded 2026 revenue outlook is a key potential catalyst for share price appreciation.
• Successful IPO and Liquidity Boost: The completion of the IPO, with significant cash proceeds and improved working capital, reduces financial risk and supports future expansion.
• Continued Strong Sales Growth: Record boats sold and robust revenue growth, even in a cautious consumer environment, highlight market share gains.
• Net Loss Due to Growth Investments: The 2025 net loss, mainly from IPO and public company costs, is a temporary result of scaling and not operational weakness. Margins are expected to improve as the business leverages its expanded platform.
• Plan to Increase Finance Attachment Rate: Management’s strategy to boost in-house financing could materially enhance margins over time.
• Strong Balance Sheet: The company is now well-capitalized to pursue growth initiatives, which may drive valuation upside.

Company Overview

Off The Hook Yachts Inc., founded in 2012 and based in Wilmington, NC, is a leading, vertically integrated marine marketplace. The company leverages technology, proprietary data, and a national acquisition network to facilitate quick, transparent, and high-volume transactions in boat brokerage, wholesale, auctions, financing, and marine services. Its ecosystem includes Autograph Yacht Group and Azure Funding, supporting nationwide expansion in the \$57 billion U.S. marine industry.

Conference Call Information

Management will host an earnings conference call on March 30, 2026, at 4:30 P.M. Eastern Time. Investors can participate by dialing (800) 715-9871 (domestic) or (646) 307-1963 (international), conference passcode 5863262. The webcast and replay will be available at the company’s investor relations website.

Disclaimer

This article is provided for informational purposes only and does not constitute financial advice or an offer to buy or sell any securities. Investors should conduct their own research and consult with their financial advisors before making investment decisions. Forward-looking statements are subject to risks and uncertainties as described in the company’s SEC filings. The author assumes no responsibility for any actions taken based on the information contained herein.

View OFF THE HOOK YS INC. Historical chart here