Malibu Boats Q1 2026 Earnings Report

Malibu Boats EPS Results

• Actual EPS: $0.15
• Consensus EPS: $0.12
• Beat/Miss: Beat by +$0.03
• One Year Ago EPS: $0.08

Malibu Boats Revenue Results

• Actual Revenue: $194.73 million
• Expected Revenue: $182.09 million
• Beat/Miss: Beat by +$12.64 million
• YoY Revenue Growth: +15.00%

Malibu Boats Announcement Details

• Quarter: Q1 2026
• Date: 10/30/2025
• Time: Before Market Opens
• Conference Call Date: Thursday, October 30, 2025
• Conference Call Time: 8:30AM ET

Malibu Boats (NASDAQ:MBUU) is a designer, manufacturer and marketer of recreational powerboats. The company produces boats for water sports, cruising, fishing and general recreation, serving consumers through a network of dealers primarily in the United States and selected international markets.

Its portfolio includes Malibu and Axis wake and watersports boats, Cobalt luxury bowriders and runabouts, and a range of saltwater fishing and offshore boats sold under brands associated with Pursuit and Maverick Boat Group, including Pathfinder, Hewes and Cobia. Products are offered in configurations using inboard and outboard propulsion, depending on the brand and intended use.

Malibu Boats was founded in 1982 and is headquartered in Loudon, Tennessee. Over time, the company has expanded beyond its original Malibu watersports business through acquisitions and brand development, building a broader portfolio that covers both freshwater recreation and saltwater fishing markets.

Malibu Boats Q1 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Q1 results modestly beat expectations with net sales up 13.5% to $194.7M, unit volume +10.3%, and adjusted EBITDA up 19.1% to $11.8M, reflecting execution and outperformance versus a soft retail backdrop.
• Negative Sentiment: Gross margin pressure in the Malibu segment (down 210 bps) was driven by higher labor/material costs and increased dealer incentives, and management expects tariffs (1.5%–3% of cost of sales) to modestly raise FY cost headwinds.
• Positive Sentiment: The company launched MBI Acceptance financing (pilot in Malibu Access) with strong early dealer engagement and plans to expand to other brands, which management says could help drive retail at the dealer level.
• Neutral Sentiment: Management kept full-year guidance unchanged (sales flat to down mid-single-digits; consolidated adjusted EBITDA margin 8%–9%) while noting slightly elevated dealer inventories but describing dealer health as sound and production will be paced to market demand.

Presentation

[Operator]

Good morning and welcome to the Malibu Boats Conference Call to discuss First Quarter Fiscal 2026 Results. At this time, all participants are in listen only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. Please be advised that reproduction of this call in whole or in part is not permitted without written authorization of Malibu Boats. As a reminder, today's call is being recorded. On the call today from management are Mr. Steve Menneto, Chief Executive Officer, and Mr. Bruce Beckman, Chief Financial Officer. I will now turn the call over to Mr. Beckman to get it started. Please go ahead, sir.

[Bruce Beckman, CFO at Malibu Boats]

Thank you and good morning everyone. Joining me on today's call is our CEO Steve Menneto. On the call, Steve will provide commentary on the business and I will discuss our first quarter of fiscal year 2026 financials. We will then open the call for questions. A press release covering the company's fiscal first quarter 2026 results was issued today, and a copy of that press release can be found in the Investor Relations section of the Company's website. I also want to remind everyone that Management's remarks on this call may contain certain forward-looking statements, including predictions, expectations, estimates, and other information that might be considered forward-looking and that actual results could differ materially from those projected on today's call.

[Bruce Beckman, CFO at Malibu Boats]

You should not place undue reliance on these forward-looking statements, which speak only as of today, and the Company undertakes no obligation to update them for any new information or future events. Factors that might affect future results are discussed in our filings with the SEC, and we encourage you to review these filings for a more detailed description of these risk factors. Please also note that we will be referring to certain non-GAAP financial measures on today's call, such as Adjusted EBITDA, Adjusted EBITDA margin, and adjusted net income per share. Reconciliations of these GAAP financial measures to non-GAAP financial measures are included in our earnings release. Finally, during today's prepared remarks, comparisons are to Q1 of fiscal 2025 unless otherwise noted. I will now turn the call over to Steve.

[Steve Menneto, CEO at Malibu Boats]

Thank you, Bruce, and good morning, everyone. We're excited to be hosting today's call from the Fort Lauderdale International Boat Show as we officially kick off the boat show season. It's always energizing to be here alongside our dealers, customers, and partners, showcasing our newest models and celebrating innovation across our brands. Turning to our results for the first quarter, we delivered a solid start to the fiscal year with revenue growth above our expectations. Despite what remains a soft retail backdrop, net sales increased approximately 13% year-over-year, and Adjusted EBITDA margins were in line with the plan. These results underscore our ability to execute and outperform the market while maintaining discipline around dealer health and channel inventories. As expected, retail activities remained soft, and inventories entering the quarter were slightly elevated.

[Steve Menneto, CEO at Malibu Boats]

We remain focused on working closely with our dealer partners to support rightsized inventory levels through targeted, market-appropriate promotions. These programs are part of our normal seasonal activity and consistent with our approach of maintaining dealer health. That said, we feel very good about where we are positioned today. Our dealers are healthy, our brands are strong, and we have conviction in the mid-cycle outperformance opportunities. At our Investor Day, we also outlined our strategy to drive growth and long-term value creation through our Build, Innovate, and Grow framework. This strategy builds on the foundation we have created as the leading premium fiberglass boat manufacturer and expands our capabilities beyond boat building into parts and accessories and marine services. Within Marine Services, we recently launched MBI Acceptance, a new financing partnership that extends our 360-degree marine ecosystem and provides an important tool to help drive retail at the dealer level.

[Steve Menneto, CEO at Malibu Boats]

Early feedback from our financing partner has been extremely positive, describing MBI Acceptance as one of the strongest programs they have seen, noting exceptional dealer engagement and early success in the rollout. Dealer participation continues to build momentum, and we look forward to providing additional updates as we expand the program throughout the year. Turning to product innovation, model year 2026 is off to a great start. Dealer and customer feedback on our newest launches have been extremely encouraging. The new Kobia models continue to generate strong excitement and validate our investments in innovation within the saltwater segment. The Malibu 21 LX and the X-Axis A200 were well received by both dealers and customers, offering accessible performance and versatility.

[Steve Menneto, CEO at Malibu Boats]

Earlier this month we introduced the Cobalt R31 Outboard, delivering up to 800 horsepower in coastal-ready luxury, and debuting this week at Fort Lauderdale, it is the all-new Pathfinder 2600 which delivers both hardcore fishability and family-ready functionality. I'd also like to take a moment to recognize Pursuit for being honored with the National Boating Safety Award in the Marine Manufacturers category from the STO Foundation. Selected out of the hundreds of boat manufacturers across the country, this recognition underscores Pursuit's leadership in our owner education and safety through its Confidence on the Water program, a partnership with the Chapman School of Seamanship that provides hands-on training for new owners. It's a great example of how our brands not only innovate in design and performance, but also lead the industry in promoting safe, confident boating experiences.

[Steve Menneto, CEO at Malibu Boats]

Overall, we are encouraged by the excitement surrounding our new model year lineup and the steps we are taking to drive retail activity and improve the customer experience. At our recent dealer meetings, the energy and optimism among our partners is clear even as retail remains soft. Our dealers are energized by our innovation both in products and in retail tools. They see the strength of our brand, the quality of our products, and the value of our partnership as key advantages that will drive success as market conditions improve. Looking ahead, we will continue to remain realistic about the broader marine environment. While we have yet to see a clear inflection signaling a broader market recovery, our focus remains unchanged: protect dealer health, manage production with precision, and continue to push the pace of innovation and execute on our strategic growth priorities outlined at our Investor Day last month.

[Steve Menneto, CEO at Malibu Boats]

We are maintaining our full year guidance and remain confident in our ability to outperform the market while continuing to build for the next up cycle. With that, I'll turn the call over to Bruce for the detailed review of our financial results.

[Bruce Beckman, CFO at Malibu Boats]

Thanks, Steve. Our results in the first quarter were modestly above our expectations. Net sales increased 13.5% to $194.7 million and unit volume increased 10.3% to 1,129 units. The increase in net sales was driven primarily by increased unit volumes in the Malibu segment, a favorable model mix in our Cobalt segment, and inflation-driven year-over-year price increases, partially offset by decreased unit volumes in the Cobalt and Saltwater Fishing segments and an unfavorable segment mix. The Malibu and Axis brands represented approximately 47.7% of unit sales. Saltwater Fishing represented 25.5% and Cobalt made up the remaining 26.8%. Consolidated net sales per unit increased 2.9% to $172,500 per unit, primarily driven by a favorable model mix in our Cobalt and Saltwater Fishing segments and inflation-driven year-over-year price increases, partially offset by an unfavorable segment mix and increased dealer incentive costs.

[Bruce Beckman, CFO at Malibu Boats]

In the Malibu segment, gross profit decreased 1% to $27.9 million and gross margin as a percent of sales was 14.3%. This represents a decrease of 210 basis points compared to the prior year period. The decrease in gross margin was driven primarily by higher unit labor and material costs and increased dealer incentive costs. In the Malibu segment, selling and marketing expenses increased $1.4 million in the first quarter. The increase was driven primarily by an increase in marketing event costs as a percentage of sales. Selling and marketing expenses increased 40 basis points to 3.2%. General and administrative expenses decreased 23.8% or $6.5 million. The decrease was driven primarily by a more favorable year-over-year comparison due to a $3.5 million legal settlement in the prior year along with good corporate expense management. As a percentage of sales, G&A expenses were 10.7%.

[Bruce Beckman, CFO at Malibu Boats]

GAAP net loss for the quarter decreased 86.2% versus the prior year to a loss of $700,000. Adjusted EBITDA for the quarter increased 19.1% to $11.8 million and Adjusted EBITDA margin increased to 6.1% from 5.8% in the prior year. Q1 non-GAAP adjusted net income per share was $0.15, up $0.08 from prior year. This is calculated using a normalized C-Corp. tax rate of 24.5% and a basic distributed weighted average share count of approximately 19.3 million shares. For a reconciliation of GAAP metrics to Adjusted EBITDA and adjusted net income per share, please see the tables in our earnings release. Turning our attention to cash flow, we generated $2.5 million of free cash flow during Q1 inclusive of $4.3 million of capital expenditures. It is worth noting that Q1 is typically a challenging cash flow quarter, and we are encouraged by the positive start to the year.

[Bruce Beckman, CFO at Malibu Boats]

As stated at our Investor Day last month, we look to maintain a prudent approach to our capital deployment, and with our capacity expansions behind us, we anticipate strong free cash flow generation as the industry returns to mid-cycle levels. Turning our attention to the full year, our view of the market has not changed. We continue to anchor our outlook with the expectation that our markets will decline in the range of mid to high single digits for the year, with a continuation of the high single digit to low double digit decline through the second quarter. With that said, we are keeping our fiscal year 2026 outlook unchanged. For the full fiscal year, we continue to expect sales to be flat to down mid single digit percentage points. For Q2, we expect sales between $175 million-$185 million.

[Bruce Beckman, CFO at Malibu Boats]

We anticipate consolidated Adjusted EBITDA margin for the full year ranging from 8%-9%. For Q2, we expect Adjusted EBITDA margins ranging from 3%-5%. This guidance incorporates a modest direct impact to our fiscal year 2026 cost structure due to tariffs, which we continue to estimate between 1.5%-3% of cost of sales. Assuming current tariff rates, we will continue to proactively mitigate impacts through our strategic supply chain management initiatives and vertical integration capabilities, which will help us minimize associated price increases. To close, we are off to a solid start with results that modestly exceeded expectations, reflecting disciplined execution and operating focus. Our strong balance sheet, operational excellence, and resilient business model give us the flexibility to scale production with retail and leverage our capacity we have put in place.

[Bruce Beckman, CFO at Malibu Boats]

Looking ahead, we are confident in our ability to deliver on our strategic objectives, outpace the market, and deploy capital prudently to drive long term value. With that, I'd like to open up the call for questions.

[Operator]

As a reminder to ask a question, you will need to press star and one on your touchtone telephone. If your question has been answered or you wish to withdraw your question, press star then two. Please stand by while we compile the Q&A roster. The first question from Joe Altobello, Raymond James, please go ahead.

[Martin Mitela, Analyst at Raymond James]

Hey, good morning, this is Martin on for Joe. Congrats on the quarter. I just wanted to quickly touch on interest rates. Have you seen them sort of come down from consumers, and is this having an effect whether it's getting people to go ahead and buy, or is it affecting mix in any way?

[Steve Menneto, CEO at Malibu Boats]

When you look at the rate cut of yesterday, I think where we see it show up is a few places. One is first, consumer sentiment. Right. I think it's just better for consumers to see those rates come down. They're still, you know, they're down about 100 basis points from the peak COVID, but they're not down to where they used to be, you know, prior. That helps consumer sentiment. Where we see it show up though, the dealer floor plan cost will come down because it's tied to SOFR. They'll see an immediate cost there. The consumer gets encouraged, the dealer gets encouraged. When you're looking at what will it do to retail finance rates, that will take a little bit of time to manifest itself into the marketplace.

[Martin Mitela, Analyst at Raymond James]

Got it, thank you. Just quickly touching on higher dealer incentives, you mentioned for Malibu brand. Is this just to clear inventory and is this something that we can expect to continue for the next couple quarters?

[Bruce Beckman, CFO at Malibu Boats]

I guess what I would say there is some of that is relating to the comparison period. Last year in the first quarter was a year of relatively light promotional activity in

[Bruce Beckman, CFO at Malibu Boats]

the Malibu segment. We were just coming off a very heavy promotional period in Q4 of 2024. Yes, the overall industry, as you know, had a soft Q4 and we were no exception to that. We started the year with a little bit higher inventory and we did some promotional activity to help our dealers work through that in the first quarter. Going forward, we expect it to be a competitive promotional environment, but not anything like we've seen here recently.

[Martin Mitela, Analyst at Raymond James]

Great, thank you and good luck.

[Bruce Beckman, CFO at Malibu Boats]

Thank you.

[Operator]

The next question is from [audio distortion]

[Kevin Condon, Analyst at Baird]

Hi guys, this is Kevin on for Craig. Thanks for taking our question. Wanted to follow up on inventory a little bit just in terms of how you're thinking about that going forward. I think now is normally a seasonal low point. Just as you think about building into next year, given your outlook, are there weeks on hand metrics or turns metrics that you target and any insight across your segments about is it healthy everywhere? Are there areas where you see more potential to stock dealers into next year?

[Bruce Beckman, CFO at Malibu Boats]

Yeah, we're constantly in contact with our floor plan finance providers monitoring inventory levels and overall dealer health. Like I mentioned a moment ago, the industry came into the year with a little bit heavier dealer inventory, but it's not very far out of line.

[Bruce Beckman, CFO at Malibu Boats]

We would expect that will continue to work itself down here as we go through the first half. As we think about our production levels and managing dealer inventory, we're really trying to align that with our expectations for the market. In the second quarter and the second half, we're expecting the markets to be down and we're going to pace our production in line with those expectations.

[Kevin Condon, Analyst at Baird]

Maybe a follow up on the retail expectation. Is it fair to say that rate of decline is fairly consistent through the year? I know it's such a seasonal business, but would you expect retail to be down each quarter consistently, or is it like a bigger front half weighted down, but then Q4 up? Any help on the shape of the year?

[Bruce Beckman, CFO at Malibu Boats]

Sure, yes.

[Bruce Beckman, CFO at Malibu Boats]

What we said in the last call is what we still are expecting today, which is the first half to be down more than the second half of the year. For the full year, we've said that our expectation is market will be down mid to high single digits and that the first half of the year will be down high single digit, low double digit, with the second half a lesser rate of decline. That is essentially exactly what we're seeing so far this year. The year is playing out in line with that expectation thus far.

[Steve Menneto, CEO at Malibu Boats]

Yeah. Mark, it allows us to, as we shared with everyone on Investor Day, it allows us to keep focusing on driving our lean manufacturing, our quality. All the things we talked about at MBI Advantage, our central sourcing category management, our go to market capability. As Bruce outlined, where retail is, we're taking full advantage of this time to continue to work on our business and make those improvements. As those volumes return, we'll be pretty excited and firing on all cylinders to keep moving forward.

[Kevin Condon, Analyst at Baird]

Gotcha. That all makes sense. Thank you so much for taking the question.

[Bruce Beckman, CFO at Malibu Boats]

Thank you.

[Operator]

The next question is from Anna Glaessgen, B. Riley, please go ahead.

[Anna Glaessgen, Analyst at B. Riley]

Hey, good morning guys. Thanks for taking my question. I'd like to turn to the commentary on the second quarter margin. Just wondering the cost impacts being contemplated there and anything to note, maybe show costs or things like that that are being contemplated. Thanks.

[Bruce Beckman, CFO at Malibu Boats]

Yeah, I mean what I would say is there is a midpoint of that guidance is below where our revenue was in Q1. There's a modest amount of deleverage that you can expect, and that's embedded in that guidance. We're seeing normal expense phasing throughout the year. We are starting the boat show season, and some of those expenses do ramp up as we get into season.

[Anna Glaessgen, Analyst at B. Riley]

Got it. On the Salt Waterfish and Cobalt, should we expect, can you touch on kind of dealer inventories in those segments and if we should start to see more in line retail and wholesale balance throughout the year?

[Bruce Beckman, CFO at Malibu Boats]

What I would say is, overall we still expect this to be a year of reduction in dealer inventories. Just overall, as we don't really see a massive difference, I would say, between our segments in terms of the market environment. We're expecting that our dealer inventories will come down in all segments.

[Anna Glaessgen, Analyst at B. Riley]

Great, thanks guys.

[Bruce Beckman, CFO at Malibu Boats]

All right, thank you.

[Operator]

The next question from Eric Wold, Texas Capital, please go ahead.

[Eric Wold, Analyst at Texas Capital]

Thanks. Good morning guys. Couple questions. I guess I want to get back to the MBI Acceptance and maybe see if you could dig in a bit more on that. I know it's been only about a month or a little less than a month since you launched that with the Malibu brand, but maybe some initial read in terms of how fast that was able to be rolled out across the dealer network. Maybe how penetrated that is so far. Any additional thoughts in terms of maybe what you've seen has worked versus hasn't worked. Maybe any helpful.

[Steve Menneto, CEO at Malibu Boats]

A lot there, Eric. We're excited about how it rolled out. If you recall, we said it was going to pilot in Malibu Axis first and that's where we're seeing that work. We are getting a lot of our dealers signed up. We're excited about that. Actually, our partners have said, like we said in our remarks, we're pretty excited about the overall adoption from our dealer base. They're seeing that as the strength to help retail boats. We're excited about that. Anecdotally, we're early in, we've seen, as you know, we've done some promotional $499 financing. There are some dormant customers that came back because our dealers have reached out to them and said we have a new offer and they actually bought boats. We're still in the anecdotal phase, to be honest.

[Steve Menneto, CEO at Malibu Boats]

We have to let this thing start to incubate, go through its pilot, then we'll start looking at the data. Everything is from launch to where we are today, pretty exciting and energizing for our dealer base.

[Eric Wold, Analyst at Texas Capital]

The plan for the other brands is still unchanged, or the timeframe of when that would roll out, correct.

[Steve Menneto, CEO at Malibu Boats]

will continue to our Q1 plan to roll it to our other brands still remains intact.

[Eric Wold, Analyst at Texas Capital]

Perfect. And then just last question, dovetailer and just discounting in general. Just give us a sense of the level of discounting that's still out there that you're seeing both, I guess with both your brands and maybe you're seeing with competitor brands and kind of when you feel that may start to cool off in the market vis-a-vis kind of channel inventories declining, rates declining. When we see that kind of discounting kind of, I don't want to get back to normal but maybe kind of cool off from current levels.

[Bruce Beckman, CFO at Malibu Boats]

Yeah, I guess what I would say, Eric, is certainly it has cooled off from the period where there was considerable excess inventory in the industry. It has cooled off from that, but it remains competitive. It is still a soft retail environment and the brands and our dealers have to compete for deals.

[Bruce Beckman, CFO at Malibu Boats]

As long as consumer sentiment is what it is, it probably will be a competitive environment, but not what it was.

[Eric Wold, Analyst at Texas Capital]

Got it. Thank you guys.

[Operator]

The next question from Noah Zatzkin, KeyBanc Capital Markets. Please go ahead.

[Noah Zatzkin, Analyst at KeyBanc Capital Markets]

Hi.

[Noah Zatzkin, Analyst at KeyBanc Capital Markets]

Thanks for taking my questions. I guess first, could you give any?

[Noah Zatzkin, Analyst at KeyBanc Capital Markets]

Color on how you're thinking about ASPs across segments? Maybe how model year 2026 pricing plays into that as well as mix would be helpful, thanks.

[Bruce Beckman, CFO at Malibu Boats]

Yeah, what I would say is we have modest year-over-year price increases. I would say the trend towards larger, more feature rich boats will continue, maybe not at the pace that they have the last couple years, but that macro trend is likely going to continue for the foreseeable future.

[Noah Zatzkin, Analyst at KeyBanc Capital Markets]

Thanks. Maybe just kind of any updates on how you're thinking about M&A or greenfielding would be helpful. Thanks.

[Steve Menneto, CEO at Malibu Boats]

Yeah, as we said, M&A and greenfielding, of course, is part of our capital deployment strategy. No changes on that front to announce. We're still looking at opportunities, as we say, we're open for business and we'll continue to consider opportunities that make sense and create value for our shareholders.

[Operator]

The next question from Jaime Katz, Morningstar. Please go ahead.

[Jamie Katz, Analyst at Morningstar]

Good morning, guys. I'm hoping you guys can help us think about what sort of top line growth or perhaps declines we need to see to start to get a little bit of expense leverage to surface here, given that absorption should improve as improvements have been made to the manufacturing process. Do we need to just get to low single digit declines to start to see a little bit of improvement, or does that have to turn positive again?

[Bruce Beckman, CFO at Malibu Boats]

We focus on maintaining good expense control and really focus on keeping our cost structure highly variable to enable us to adjust to the market conditions that we find ourselves in. I think having the market declines shallow out will certainly be helpful. Obviously, to get real leverage, you have to see the markets turn. We're prepared. We're driving our innovation, we're driving our outperformance initiatives. We're not waiting for the market to return to growth, but I think to see large scale volume leverage, you probably will need to see the market return to growth.

[Jamie Katz, Analyst at Morningstar]

Okay. As we look at the back half of this fiscal year, I'm trying to think of whether there might be a little bit of resilience in the gross margin line, given that I think we saw some tariffs already in the final quarter of fiscal 2025. Maybe a little bit of a discussion between the benefit or the lack of input or lack of impact to gross profit at the end of the year this year versus last year. Were there any one-time items at the end of the year in G&A that might make the G&A ratio a little bit more competitive this year in the back half?

[Bruce Beckman, CFO at Malibu Boats]

I don't remember if there were any comparison items in last year, so that's probably not the case. I mean, I think we expect the tariff kind of headwinds to build, as well as our tariff mitigations to take hold as the year plays out. Of course, we're always working initiatives to drive margin performance.

[Bruce Beckman, CFO at Malibu Boats]

So.

[Bruce Beckman, CFO at Malibu Boats]

We are expecting higher margins in the second half embedded in our guidance, and certainly gross margin is a part of that overall equation.

[Jamie Katz, Analyst at Morningstar]

Thanks.

[Operator]

The next question from Mike Albanese, Benchmark, please go ahead.

[Bruce Beckman, CFO at Malibu Boats]

Mike.

[Operator]

Mr. Albanese, your line is open.

[Mike Albanese, Analyst at Benchmark]

Sorry, guys. Can you hear me?

[Steve Menneto, CEO at Malibu Boats]

Hey Mike.

[Mike Albanese, Analyst at Benchmark]

Yep, good morning. Thanks for taking my question. I just want to dive into the consumer a little bit more. Curious if you're seeing any updates to consumer behavior as it relates to payment buyer, cash buyer, what that mix has looked like. I know it's early, but I'm assuming MBI Acceptance will give you or does it give you a little bit more visibility into that?

[Steve Menneto, CEO at Malibu Boats]

I think two things, Mike, on that. One, no change from what we were talking about earlier about where that cash buyer, payment buyer dynamic has landed over the last few quarters and still seems to be persisting through this quarter. The MBI Acceptance, from a data point, it's early on. We're trying to see where that starts to feed us more information and to be smarter about how we go to market with some of our tools. We're just getting into mining some of the opportunities there. Nothing really to share yet, but that we will have a look into.

[Steve Menneto, CEO at Malibu Boats]

What.

[Steve Menneto, CEO at Malibu Boats]

The consumers' purchasing habits are, and some of the data around that. I think that will be later down the road once you can get enough data in to create some trends. We'll get the advantage of that.

[Bruce Beckman, CFO at Malibu Boats]

Yeah, I would just add, Mike, I mean as you know, the consumer finance rates tend to be tied to longer term treasury markets, not really the short term interest rate. It will take a little while, I think, for the short term cuts to work their way through to the consumer finance rates, and that's really probably what's going to be required to see a shift in that cash buyer to payment buyer ratio.

[Mike Albanese, Analyst at Benchmark]

Thanks, guys.

[Operator]

I'm not showing any further questions at this time. This concludes today's conference call. Thank you for participating. You may now disconnect your lines. Goodbye.

[Steve Menneto, CEO at Malibu Boats]

Thank you.

Participants

Executives

• Bruce Beckman, CFO
• Steve Menneto, CEO

Analysts

• Jamie Katz, Analyst at Morningstar
• Anna Glaessgen, Analyst at B. Riley
• Mike Albanese, Analyst at Benchmark
• Eric Wold, Analyst at Texas Capital
• Noah Zatzkin, Analyst at KeyBanc Capital Markets
• Kevin Condon, Analyst at Baird
• Martin Mitela, Analyst at Raymond James