HZOHIGH SIGNALFINANCIAL10-K

HZO experienced a substantial decline in operating income while repositioning its business model and distribution strategy.

The dramatic reduction in operating profitability signals significant operational challenges or strategic transition costs that investors should monitor closely. The company's evolution from describing itself as a "recreational boat, yacht and superyacht services company" to emphasizing its role as a "retailer, marina operator and superyacht services company" suggests a strategic shift toward retail operations that may be impacting near-term profitability.

Comparing 2025-11-17 vs 2024-11-14View on EDGAR →
FINANCIAL ANALYSIS

HZO's financial performance deteriorated meaningfully, with operating income declining substantially from $128.2M to $34.0M, indicating significant operational headwinds or transition costs. Cash and equivalents decreased moderately by 24% to $170.4M, which while notable, appears manageable given the company's size. The combination of reduced profitability and lower cash reserves alongside strategic repositioning creates a concerning financial picture that warrants close investor attention.

FINANCIAL STATEMENT CHANGES
Operating Income
P&L
-73.5%
$128.2M$34.0M

Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.

Cash & Equivalents
Balance Sheet
-24.1%
$224.3M$170.4M

Cash decreased 24.1% — monitor burn rate and upcoming capital needs.

LANGUAGE CHANGES
NEW — 2025-11-17
PRIOR — 2024-11-14
ADDED
As of November 10, 2025, there we re outstanding 21,869,518 shares of the registrant s common stock, par value $.001 per share.
B usiness Introduction Our Company We believe we are the world s largest recreational boat and yacht retailer, marina operator and superyacht services company.
As of September 30, 2025, we have over 120 locations worldwide, including over 70 retail dealership locations, some of which include marinas.
Cruisers Yachts, Aviara luxury dayboats, and Intrepid Powerboats all manufacture boats and yachts and recognize sales through our select retail dealership locations and through independent dealers.
Intrepid Powerboats sells through our retail dealership locations as well as independent dealers and has received many awards and accolades for its innovations and high-quality craftsmanship that create industry leading products in their categories.
In January 2025, we acquired the service and parts departments of Treasure Island Marina in the Florida Panhandle.
In March 2025, we acquired Shelter Bay Marina in Marathon, Florida.
Sales of new Brunswick boats accounted for approximately 18% of our revenue in fiscal 2025.
Sales of new Sea Ray and Boston Whaler boats, both divisions of Brunswick, accounted for approximately 8% and 9%, respectively, of our revenue in fiscal 2025.
Sales of new Azimut boats and yachts accounted for approximately 1 6% of our revenue in fiscal 2025.
REMOVED
As of November 12, 2024 , there were outstanding 22,594,565 shares of the registrant s common stock, par value $.001 per share.
B usiness Introduction Our Company We believe we are the world s largest recreational boat, yacht and superyacht services company.
As of September 30, 2024, we have over 120 locations worldwide, including over 75 retail dealership locations, some of which include marinas.
Cruisers Yachts manufactures boats and yachts with sales through our select retail dealership locations and through independent dealers.
Intrepid Powerboats manufactures powerboats and sells through a direct-to-consumer model.
Intrepid Powerboats follows a direct-to-consumer distribution model and has received many awards and accolades for its innovations and high-quality craftsmanship that create industry leading products in their categories.
Sales of new Brunswick boats accounted for approximately 20% of our revenue in fiscal 2024.
Sales of new Sea Ray and Boston Whaler boats, both divisions of Brunswick, accounted for approximately 9% and 9%, respectively, of our revenue in fiscal 2024.
Sales of new Azimut boats and yachts accounted for approximately 1 8% of our revenue in fiscal 2024.
As a result of our emphasis on premium brand boats, our average selling price for a new boat in fiscal 2024 was approximately $327,000, an increase from approximately $306,000 in fiscal 2023, compared with the industry average selling price for calendar 2023 of approximately $90,000 based on industry data published by the National Marine Manufacturers Association.
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