🧾 What This Document Is

This is an 8-K filing from Off The Hook Yachts (stock ticker: OTH), which is a report to investors about major events. The main event here is the company announcing its financial results for the full year 2025 and the fourth quarter. It's a "corrected and replaced" version, meaning they fixed an error in an earlier announcement.

🏢 What The Company Does

In simple terms, Off The Hook Yachts is the largest buyer and seller of used boats in the United States. They operate like a one-stop shop or marketplace for the boating world. Their business is "vertically integrated," which means they control several steps: they buy boats wholesale, sell them retail through a network of brokers, and even provide financing through their own arm called Azure Funding. They're based in Wilmington, North Carolina.

🚀 Key Moves & Record Results

2025 was a landmark year for the company, marked by two big moves:

1. Initial Public Offering (IPO): They successfully went public in November 2025, selling shares on the NYSE American exchange. This raised about $13.4 million in net cash for the company, which dramatically strengthened its bank account and financial foundation.
2. Operational Expansion: They grew their national network of brokers and launched a new premium brokerage division called Autograph Yacht Group. They also increased their "floorplan" borrowing capacity, which is like a credit line used to buy inventory (boats).

👉 Why it matters: The IPO provided the fuel (cash) for growth, while the operational moves built the engine to scale the business.

💰 Financial Highlights: The Numbers

Here’s a breakdown of the key results for 2025 compared to 2024.

Annual Performance (Full Year 2025):

• Revenue: $119.9 million, up 21.1% from $99.0 million.
• Boats Sold: A record 426 boats, up 33% from 321.
• Gross Profit: $11.5 million, up 30.6%.
• Net Loss: $1.87 million, compared to net income of $1.0 million in 2024.
• Adjusted EBITDA (a measure of core profitability): $0.437 million, down from $1.2 million.

Fourth Quarter 2025 Highlights:

• Revenue: $37.3 million, up 25.2%.
• Boats Sold: 117 boats, up 62.5%.

👉 Key Insight: Sales are booming, but the company posted a net loss. This is primarily because they spent heavily to grow—investing in marketing, salaries for new brokers, and the costs of being a public company (including $1.8 million in stock-based compensation).

📦 Financial Position: A Stronger Balance Sheet

The IPO changed the company's financial picture entirely.

• Cash on Hand: Ballooned to $12.4 million at year-end 2025, up from $2.93 million just three months earlier (Sept 30, 2025).
• Working Capital: (Current Assets minus Current Liabilities) improved to a healthy $9.4 million, from negative $0.4 million a year ago.
• Total Assets: Grew to $48.4 million.
• Total Liabilities: Stand at $36.5 million, with the largest chunk being $25.3 million in "floorplan notes payable" (the loans used to buy boat inventory).

👉 Why it matters: The company went from a tight cash position to having a solid cushion. This "liquidity" means they have the money to fund their aggressive growth plans without immediate financial stress.

📈 Growth Drivers & What's Next

The company's growth is fueled by a few key engines:

1. Pre-Owned Boat Sales: This is their core. Revenue here grew 20% to $101.7 million. They sold more boats, though the average sale price dropped (from ~$510k to ~$449k), likely due to a strategic focus on different boat types or market conditions.
2. Floorplan Financing: Utilizing a larger credit line to stock more boats was a major revenue driver. Average monthly financing usage jumped 78%.
3. Future Guidance: Management is so confident they raised their 2026 revenue guidance to $150-$155 million, up from a previous range of $140-$145 million.

The strategy for 2026? Keep growing the broker network, increase the use of their own Azure financing with more sales (improving a high-margin business), and leverage their new national scale.

⚖️ Strengths & Risks at a Glance

👍 Strengths:

• Market Leadership: Largest used boat marketplace in the U.S.
• Integrated Model: Control over buying, selling, and financing creates efficiency.
• Proven Demand: Record sales volume despite a cautious economy.
• Fueled for Growth: Recent IPO provides essential capital.

⚠️ Risks & Challenges:

• Profitability is Not Yet Consistent: The company is prioritizing growth over immediate profit, leading to a net loss.
• Macro Sensitivity: Boats are big discretionary purchases; a weak economy could hurt sales.
• Interest Rate Pressure: Higher rates made Azure Finance revenue dip, as fewer buyers used financing.
• Public Company Costs: New expenses (compliance, audits, stock compensation) are now a permanent part of the cost structure.

🧠 The Analogy

Off The Hook Yachts is like a hungry, ambitious local restaurant that just secured a major investment to franchise nationwide. They're using the cash to open many new locations (expand the broker network), hire more chefs (sales staff), and build bigger kitchens (increase floorplan capacity). Sales are skyrocketing, but the costs of rapid expansion mean they're not yet showing a net profit. The big question is whether they can efficiently scale their "recipe" for success across the entire country.

📇 Key Contacts & People

• Chad Corbin, Chief Financial Officer (CFO) - [email protected]
• John Evans, Investor Relations - [email protected]

🧩 Final Takeaway

Off The Hook Yachts is a growth story in overdrive, using IPO cash to aggressively expand its leading used boat marketplace. While sales are hitting records, the company is currently sacrificing short-term profit for long-term scale, betting that its integrated model will win in the massive U.S. marine market.