0001424929-26-000035
SEC filingRevenue grew on strong demand in powersports and automotive aftermarket, but profitability was pressured by tariffs and operating losses, though net loss narrowed sharply year-over-year.
Net sales rose to $368.7M, fueled by robust demand across powersports, automotive aftermarket, and upfitting product lines, as well as stable aftermarket sales. This growth more than offset ongoing inventory destocking by distributors and dealers responding to broader economic conditions. The company also noted planned inventory builds to support anticipated demand, signaling confidence in near-term order trends.
Inventory increased primarily due to planned inventory builds to support anticipated demand. The company continues to assess the potential effects of tariff developments on its supply chain and sourcing strategies as well as future operating results, cash flows, and working capital.
Management is pursuing aggressive cost management and operational improvements, including a strategic review of the business portfolio that could involve divestitures. The Transformation Committee, formed in February 2026, is focused on profitability, cost-cutting, and margin improvement. However, the company cautions that these initiatives may be delayed or unsuccessful due to factors outside its control. No quantitative guidance was provided, but the emphasis on free cash flow generation and deleveraging suggests a conservative near-term outlook.