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SEC filingMalibu Boats reported revenue growth and strong operating cash flow in Q3 FY2026, but operating and net income turned negative due to Saxdor acquisition-related impacts and persistent cost pressures from lower volumes and inflation.
Revenue for Q3 FY2026 totaled $235.7M, up 3.1% from $228.7M in Q3 FY2025. As stated in Management’s Discussion, this increase was driven by a favorable model mix and year-over-year price increases, partially offset by a decrease in units. No quantitative unit volume change is supported in the authoritative packet, so the explanation remains strictly qualitative—consistent with disclosures in Item 2.
Gross profit decreased 9.7% to $41.3M, resulting in a gross margin of 17.5%. This reflects elevated per-unit material and labor costs, which management attributes to three interrelated factors: fixed cost deleveraging due to lower unit volumes across all segments; a model mix that corresponds to higher costs per unit—specifically cited in Cobalt and Saltwater Fishing segments; and ongoing inflationary pressures. Shipping costs and depreciation related to manufacturing equipment are also included in cost of sales, per management commentary.
Operating income declined to a loss of $1.9M, compared to $17.4M in the prior-year quarter—a 111.0% year-over-year decrease. The Saxdor acquisition introduced immediate earnings pressure, including integration-related expenses. Concurrently, lower volumes reduced operating leverage, amplifying the impact of fixed-cost absorption challenges across the business. Management does not quantify Saxdor’s specific cost contribution, but confirms its role in the broader earnings dynamic.
Net income was -$2.4M, down from $12.9M, and diluted EPS was -$0.13 versus $0.66. The magnitude of the decline underscores how non-revenue drivers—including acquisition costs and margin compression—propagated through the income statement. Management uses Adjusted EBITDA to assess core performance, excluding non-recurring or non-operating items, though no Adjusted EBITDA figure is disclosed in the authoritative packet.