MALIBU BOATS, INC. 10-K

Item 8. Financial Statements and Supplementary Data INDEX TO FINANCIAL STATEMENTS Page Report of Management on Internal Control Over Financial Reporting 60 Reports of Independent Registered Public Accounting Firm 61 Consolidated Statements of Operations and Comprehensive Income (Loss) for the Fiscal Years Ended June 30, 2025, 2024, and 2023 64 Consolidated Balance Sheets as of June 30, 2025 and 2024 65 Consolidated Statements of Stockholders' Equity for the Fiscal Years Ended June 30, 2025, 2024, and 2023 66 Consolidated Statements of Cash Flows for the Fiscal Years ended June 30, 2025, 2024, and 2023 68 Notes to Consolidated Financial Statements 70 59 Table of Contents MALIBU BOATS, INC. AND SUBSIDIARIES Report of Management on Internal Control Over Financial Reporting Malibu Boats, Inc.'s (the "Company") management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended. Internal control over financial reporting is a process to provide reasonable assurance regarding the reliability of the Company's financial reporting for external purposes in accordance with U.S. generally accepted accounting principles. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. The Company's management, including its chief executive officer and chief financial officer, assessed the effectiveness of the Company's internal control over financial reporting as of June 30, 2025. In making this assessment, the Company used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") in Internal Control-Integrated Framework (2013) . Based on such assessment the Company's management has concluded that, as of June 30, 2025, its internal control over financial reporting is effective based on those criteria. The effectiveness of internal control over financial reporting as of June 30, 2025 has been audited by KPMG LLP, an independent registered public accounting firm, as stated in its attestation report, which is included herein. Malibu Boats, Inc. Loudon, Tennessee August 28, 2025 60 Table of Contents Report of Independent Registered Public Accounting Firm To the Stockholders and Board of Directors Malibu Boats, Inc.: Opinion on Internal Control Over Financial Reporting We have audited Malibu Boats, Inc. and subsidiaries' (the Company) internal control over financial reporting as of June 30, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of June 30, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of June 30, 2025 and 2024, the related consolidated statements of operations and comprehensive income (loss), stockholders’ equity, and cash flows for each of the years in the three-year period ended June 30, 2025, and the related notes (collectively, the consolidated financial statements), and our report dated August 28, 2025 expressed an unqualified opinion on those consolidated financial statements. Basis for Opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Report of Management on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control Over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ KPMG LLP Nashville, Tennessee August 28, 2025 61 Table of Contents Report of Independent Registered Public Accounting Firm To the Stockholders and Board of Directors Malibu Boats, Inc.: Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated balance sheets of Malibu Boats, Inc. and subsidiaries (the Company) as of June 30, 2025 and 2024, the related consolidated statements of operations and comprehensive income (loss), stockholders’ equity, and cash flows for each of the years in the three-year period ended June 30, 2025, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the three-year period ended June 30, 2025, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of June 30, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated August 28, 2025 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting. Basis for Opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Evaluation of certain assumptions underlying the product warranty liability for certain brands As discussed in Note 9 to the consolidated financial statements, the Company's product warranty liability as of June 30, 2025 was $41.0 million. The product warranty liability represents estimated future costs to repair or replace defective products during the warranty period for each boat sold. The Company's estimated future costs to repair or replace defective products includes assumptions regarding the anticipated warranty costs per boat by brand. We identified the evaluation of the anticipated warranty costs per boat that are used to estimate the product warranty liability for Malibu and Axis branded boats as a critical audit matter. A higher degree of subjective auditor judgment was required to evaluate the Company's estimate of the anticipated warranty costs per boat, due to the nature of the audit evidence. The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls over the Company's warranty accrual process. This included controls over the development of the assumptions used to estimate the warranty cost per boat. We performed sensitivity analyses to assess the potential for possible changes to these assumptions on the product warranty liability. We assessed the 62 Table of Contents Company's historical claims experience and the relationship between the historical warranty costs per boat incurred by warranty year. We further assessed the Company's assumptions underlying the anticipated warranty costs per boat by considering warranty claims received after year-end but before the consolidated financial statements were issued, to identify trends not considered by the Company when it developed its assumptions. We also compared the Company’s prior year product warranty liability related to claims expected to be incurred in the current year to actual claims received in the current year to evaluate the historical accuracy of the Company’s estimate. /s/ KPMG LLP We have served as the Company’s auditor since 2015. Nashville, Tennessee August 28, 2025 63 Table of Contents MALIBU BOATS, INC. AND SUBSIDIARIES Consolidated Statements of Operations and Comprehensive Income (Loss) (In thousands, except share and per share data) Fiscal Year Ended June 30, 2025 2024 2023 Net sales $ 807,561 $ 829,035 $ 1,388,365 Cost of sales 663,470 681,940 1,037,070 Gross profit 144,091 147,095 351,295 Operating expenses: Selling and marketing 23,071 22,784 24,009 General and administrative 92,460 76,323 175,694 Goodwill and other intangible asset impairment — 88,389 — Abandonment of construction in process — 8,735 — Amortization 6,799 6,811 6,808 Operating income (loss) 21,761 ( 55,947 ) 144,784 Other expense (income), net: Other (income) expense, net ( 385 ) ( 4 ) 331 Interest expense 1,883 1,842 2,962 Other expense, net 1,498 1,838 3,293 Income (loss) before provision (benefit) for income taxes 20,263 ( 57,785 ) 141,491 Provision (benefit) for income taxes 5,023 ( 1,342 ) 33,581 Net income (loss) 15,240 ( 56,443 ) 107,910 Net income (loss) attributable to non-controlling interest 361 ( 531 ) 3,397 Net income (loss) attributable to Malibu Boats, Inc. $ 14,879 $ ( 55,912 ) $ 104,513 Comprehensive income (loss): Net income (loss) $ 15,240 $ ( 56,443 ) $ 107,910 Other comprehensive (loss) income Change in cumulative translation adjustment ( 448 ) 142 ( 833 ) Other comprehensive (loss) income ( 448 ) 142 ( 833 ) Comprehensive income (loss) 14,792 ( 56,301 ) 107,077 Less: comprehensive income (loss) attributable to non-controlling interest, net of tax 346 ( 516 ) 3,371 Comprehensive income (loss) attributable to Malibu Boats, Inc., net of tax $ 14,446 $ ( 55,785 ) $ 103,706 Weighted average shares outstanding used in computing net income (loss) per share: Basic 19,664,337 20,439,449 20,501,844 Diluted 19,694,677 20,439,449 20,641,173 Net income (loss) available to Class A Common Stock per share: Basic $ 0.76 $ ( 2.74 ) $ 5.10 Diluted $ 0.76 $ ( 2.74 ) $ 5.06 The accompanying notes are an integral part of these Consolidated Financial Statements. 64 Table of Contents MALIBU BOATS, INC. AND SUBSIDIARIES Consolidated Balance Sheets (In thousands, except share and per share data) June 30, 2025 June 30, 2024 Assets Current assets Cash $ 37,002 $ 26,945 Trade receivables, net 23,034 23,141 Inventories, net 142,163 145,573 Prepaid expenses and other current assets 14,634 6,470 Assets held for sale 3,059 — Total current assets 219,892 202,129 Property, plant and equipment, net 235,877 244,601 Goodwill 51,306 51,415 Other intangible assets, net 168,634 175,449 Deferred tax assets 51,601 58,097 Other assets 7,268 7,933 Total assets $ 734,578 $ 739,624 Liabilities Current liabilities Accounts payable 24,420 19,152 Accrued expenses 109,770 119,430 Income taxes and tax distribution payable 151 4 Payable pursuant to tax receivable agreement, current portion 271 — Total current liabilities 134,612 138,586 Deferred tax liabilities 14,674 17,661 Other liabilities 7,297 8,045 Payable pursuant to tax receivable agreement, less current portion 40,162 40,613 Long-term debt 18,000 — Total liabilities 214,745 204,905 Commitments and contingencies (See Note 17) Stockholders' Equity Class A Common Stock, par value $ 0.01 per share, 100,000,000 shares authorized; 19,225,848 shares issued and outstanding as of June 30, 2025; 20,181,542 shares issued and outstanding as of June 30, 2024 190 200 Class B Common Stock, par value $ 0.01 per share, 25,000,000 shares authorized; 12 shares issued and outstanding as of June 30, 2025; 12 shares issued and outstanding as of June 30, 2024 — — Preferred Stock, par value $ 0.01 per share; 25,000,000 shares authorized; no shares issued and outstanding as of June 30, 2025; no shares issued and outstanding as of June 30, 2024 — — Additional paid in capital 35,253 64,222 Accumulated other comprehensive loss, net of tax ( 4,646 ) ( 4,198 ) Accumulated earnings 484,664 469,785 Total stockholders' equity attributable to Malibu Boats, Inc. 515,461 530,009 Non-controlling interest 4,372 4,710 Total stockholders’ equity 519,833 534,719 Total liabilities and stockholders' equity $ 734,578 $ 739,624 The accompanying notes are an integral part of these Consolidated Financial Statements. 65 Table of Contents MALIBU BOATS, INC. AND SUBSIDIARIES Consolidated Statements of Stockholders' Equity (In thousands, except number of Class B shares) Additional Paid In Capital Accumulated Other Comprehensive Loss, net of tax Accumulated Earnings Non-controlling Interest in LLC Total Stockholders' Equity Class A Common Stock Class B Common Stock Shares Amount Shares Amount Balance at June 30, 2022 20,501 $ 203 10 $ — $ 85,294 $ ( 3,507 ) $ 421,184 $ 10,394 $ 513,568 Net income — — — — — — 104,513 3,397 107,910 Stock-based compensation, net of withholding taxes on vested equity awards 68 1 — — 2,709 — — — 2,710 Issuances of equity for services 2 — — — 1,194 — — — 1,194 Issuance of equity for exercise of options 31 — — — 1,317 — — — 1,317 Repurchase and retirement of common stock ( 144 ) ( 1 ) — — ( 7,867 ) — — — ( 7,868 ) Increase in payable pursuant to the tax receivable agreement — — — — ( 1,710 ) — — — ( 1,710 ) Increase in deferred tax asset from step-up in tax basis — — — — 2,619 — — — 2,619 Exchange of LLC Units for Class A Common Stock 145 1 — — 2,765 — — ( 2,765 ) 1 Issuance of Class B Common Stock — — 2 — — — — — — Distributions to LLC Unit holders — — — — — — ( 3,131 ) ( 3,131 ) Foreign currency translation adjustment — — — — — ( 833 ) — ( 24 ) ( 857 ) Balance at June 30, 2023 20,603 204 12 — 86,321 ( 4,340 ) 525,697 7,871 615,753 Net loss — — — — — — ( 55,912 ) ( 531 ) ( 56,443 ) Stock-based compensation, net of withholding taxes on vested equity awards 131 1 — — 3,397 — — — 3,398 Issuances of equity for services 12 — — — 1,179 — — — 1,179 Repurchase and retirement of common stock ( 699 ) ( 7 ) — — ( 29,836 ) — — — ( 29,843 ) Increase in payable pursuant to the tax receivable agreement — — — — ( 1,320 ) — — — ( 1,320 ) 66 Table of Contents Increase in deferred tax asset from step-up in tax basis — — — — 1,960 — — — 1,960 Exchange of LLC Units for Class A Common Stock 135 2 — — 2,521 — — ( 2,521 ) 2 Distributions to LLC Unit holders — — — — — — — ( 114 ) ( 114 ) Foreign currency translation adjustment — — — — — 142 — 5 147 Balance at June 30, 2024 20,182 200 12 — 64,222 ( 4,198 ) 469,785 4,710 534,719 Net income — — — — — — 14,879 361 15,240 Stock-based compensation, net of withholding taxes on vested equity awards ( 16 ) — — — 4,761 — — — 4,761 Issuances of equity for services 12 — — — 1,091 — — — 1,091 Issuance of equity for exercise of options — — — — 233 — — — 233 Repurchase and retirement of common stock ( 997 ) ( 10 ) — — ( 35,945 ) — — — ( 35,955 ) Increase in payable pursuant to the tax receivable agreement — — — — ( 167 ) — — — ( 167 ) Increase in deferred tax asset from step-up in tax basis — — — — 367 — — — 367 Exchange of LLC Units for Class A Common Stock 45 — — — 691 — — ( 691 ) — Foreign currency translation adjustment — — — — — ( 448 ) — ( 8 ) ( 456 ) Balance at June 30, 2025 19,226 $ 190 12 $ — $ 35,253 $ ( 4,646 ) $ 484,664 $ 4,372 $ 519,833 The accompanying notes are an integral part of these Consolidated Financial Statements. 67 Table of Contents MALIBU BOATS, INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows (In thousands) Fiscal Year Ended June 30, 2025 2024 2023 Operating activities: Net income (loss) $ 15,240 $ ( 56,443 ) $ 107,910 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Non-cash compensation expense 5,916 4,935 5,894 Non-cash compensation to directors 1,091 1,512 1,136 Depreciation 31,794 26,178 21,912 Amortization 6,799 6,811 6,808 Deferred income taxes 3,870 ( 4,355 ) ( 16,158 ) Adjustment to tax receivable agreement liability ( 347 ) 36 188 Other items, net 2,394 2,217 1,680 Goodwill and other intangible asset impairment — 88,389 — Abandonment of construction in process — 8,735 — Change in operating assets and liabilities: Trade receivables 106 45,257 ( 16,804 ) Inventories 3,373 25,702 ( 14,362 ) Prepaid expenses and other assets ( 493 ) 1,668 ( 1,705 ) Accounts payable 6,560 ( 20,612 ) ( 5,148 ) Income taxes receivable and payable 269 ( 708 ) 6 Accrued expenses ( 17,758 ) ( 67,634 ) 99,326 Other liabilities ( 2,308 ) ( 1,922 ) ( 1,976 ) Payment pursuant to tax receivable agreement — ( 4,208 ) ( 3,974 ) Net cash provided by operating activities 56,506 55,558 184,733 Investing activities: Purchases of property and equipment ( 27,917 ) ( 75,962 ) ( 54,840 ) Proceeds from sale of property and equipment 543 120 202 Net cash used in investing activities ( 27,374 ) ( 75,842 ) ( 54,638 ) Financing activities: Proceeds from revolving credit facility 48,000 75,000 241,700 Payments on revolving credit facility ( 30,000 ) ( 75,000 ) ( 338,700 ) Principal payments on long-term borrowings — — ( 23,125 ) Payment of deferred financing costs — — ( 1,362 ) Proceeds received from exercise of stock options 233 — 1,317 Cash paid for tax withholdings ( 1,098 ) ( 1,489 ) ( 3,135 ) Distributions to non-controlling LLC Unit holders — ( 890 ) ( 3,401 ) Repurchase and retirement of Class A Common Stock ( 35,955 ) ( 29,316 ) ( 7,868 ) Net cash used in financing activities ( 18,820 ) ( 31,695 ) ( 134,574 ) Effect of exchange rate changes on cash ( 255 ) ( 13 ) ( 328 ) Changes in cash 10,057 ( 51,992 ) ( 4,807 ) Cash—Beginning of period 26,945 78,937 83,744 Cash—End of period $ 37,002 $ 26,945 $ 78,937 Supplemental cash flow information: 68 Table of Contents Cash paid for interest $ 1,945 $ 3,046 $ 3,061 Cash paid for income taxes 910 3,529 50,515 Income tax refunds ( 1,565 ) ( 1,404 ) — Non-cash operating, investing and financing activities: Establishment of deferred tax assets from step-up in tax basis 367 1,960 2,619 Establishment of amounts payable under tax receivable agreements 167 1,320 1,710 Exchange of LLC Units for Class A Common Stock 691 2,521 2,765 Tax distributions payable to non-controlling LLC Unit holders — — 776 Reclassification of properties to assets held for sale 3,059 — — ROU assets obtained in exchange for lease liabilities 1,787 — — Repurchase/retirement of common stock not settled — 527 — Capital expenditures in accounts payable 250 1,045 2,207 The accompanying notes are an integral part of these Consolidated Financial Statements. 69 Table of Contents MALIBU BOATS, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (Dollars in thousands, except per unit and share and per share data) 1. Organization, Basis of Presentation, and Summary of Significant Accounting Policies Organization Malibu Boats, Inc. (“MBI”, and together with its subsidiaries, the “Company” or "Malibu"), a Delaware corporation formed on November 1, 2013, is the sole managing member of Malibu Boats Holdings, LLC, a Delaware limited liability company (the "LLC"). The Company operates and controls all of the LLC's business and affairs and, therefore, pursuant to Financial Accounting Standards Board ("FASB") Accounting Standards Codification (“ASC”) Topic 810, Consolidation , consolidates the financial results of the LLC and its subsidiaries, and records a non-controlling interest for the economic interest in the Company held by the non-controlling holders of units in the LLC ("LLC Units"). The LLC was formed in 2006. The LLC, through its wholly owned subsidiary, Malibu Boats, LLC, (“Boats LLC”), is engaged in the design, engineering, manufacturing and marketing of innovative, high-quality, recreational powerboats that are sold through a world-wide network of independent dealers. The Company sells its boats under eight brands -- Malibu, Axis, Pursuit, Maverick, Cobia, Pathfinder, Hewes and Cobalt brands. The Company reports its results of operations under three reportable segments -- Malibu, Saltwater Fishing and Cobalt. Basis of Presentation The accompanying consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). Units and shares are presented as whole numbers while all dollar amounts are presented in thousands, unless otherwise noted. Principles of Consolidation The accompanying consolidated financial statements include the operations and accounts of the Company and all subsidiaries thereof. All intercompany balances and transactions have been eliminated upon consolidation. Segment Reporting The Company has three reportable segments, Malibu, Saltwater Fishing and Cobalt. The Malibu segment participates in the manufacturing, distribution, marketing and sale of Malibu and Axis performance sports boats throughout the world. The Saltwater Fishing segment participates in the manufacturing, distribution, marketing and sale throughout the world of Pursuit boats and the Maverick Boat Group boats (Maverick, Cobia, Pathfinder and Hewes). The Cobalt segment participates in the manufacturing, distribution, marketing and sale of Cobalt boats throughout the world. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates, and such differences could be material. Certain Significant Risks and Uncertainties The Company is subject to those risks common in manufacturing-driven markets, including, but not limited to, competitive forces, dependence on key personnel, consumer demand for its products, the successful protection of its proprietary technologies, compliance with government regulations and the possibility of not being able to obtain additional financing if and when needed. Concentration of Credit and Business Risk A majority of the Company’s sales are made pursuant to floor plan financing programs in which the Company participates on behalf of its dealers through a contingent repurchase agreement with various third-party financing institutions. Under these arrangements, a dealer establishes a line of credit with one or more of these third-party lenders for the purchase of dealer boat inventory. When a dealer purchases and takes delivery of a boat pursuant to a floor plan financing arrangement, it draws against its line of credit and the lender pays the invoice cost of the boat directly to the Company within approximately two weeks. For dealers that use local floor plan financing programs or pay cash, the Company may extend credit without collateral under the 70 Table of Contents dealer agreement based on the Company’s evaluation of the dealer’s credit risk and past payment history. The Company maintains allowances for potential credit losses that it believes are adequate. See Trade Accounts Receivable section within this footnote for more information. The Company’s top ten dealers represented 42.8 %, 40.4 % and 41.1 %, of the Company’s net sales for the fiscal years ended June 30, 2025, 2024, and 2023, respectively. Cash The Company considers all highly liquid investments purchased with an original maturity of 90 days or less to be cash equivalents. Cash equivalents are stated at cost, which approximates fair value. As of June 30, 2025 and 2024, no highly liquid investments were held and the entire balance consists of cash. At June 30, 2025 and 2024, substantially all cash on hand was held by two financial institutions. This cash on deposit may be, at times, in excess of insurance limits provided by the FDIC. Trade Accounts Receivable Trade receivables are carried at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. As of June 30, 2025 and 2024, the allowance for doubtful receivables was $ 0 . Management determines the allowance for doubtful accounts by identifying troubled accounts and by using historical experience applied to an aging of accounts. Trade receivables are written off when deemed uncollectible. Recoveries of trade receivables previously written off are recorded when received. A trade receivable is considered to be past due if any portion of the receivable balance is outstanding beyond customer terms. Goodwill Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Goodwill amounts are not amortized, but rather are evaluated for potential impairment on an annual basis, as of June 30, in accordance with the provisions of ASC Topic 350, Intangibles—Goodwill and Other . Under the guidance, the Company may assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If this assessment indicates the possibility of impairment, the income approach to test for goodwill impairment would be used. Under the income approach, management calculates the fair value of its reporting units based on the present value of estimated future cash flows. If the fair value of an individual reporting unit exceeds the carrying value of the net assets including goodwill assigned to that unit, goodwill is not impaired. If the carrying value of the reporting unit’s net assets including goodwill exceeds the fair value of the reporting unit, then management determines the implied fair value of the reporting unit’s goodwill. If the carrying value of the reporting unit’s goodwill exceeds its implied fair value, then the Company would record an impairment loss equal to the difference. For the fiscal year ended June 30, 2025, the Company performed a qualitative assessment on the reporting units which indicated that the fair value of its reporting units more likely than not exceeded their respective carrying amounts. The Company did not recognize any goodwill impairment charges in the fiscal year ended June 30, 2025. During the three months ended March 31, 2024, the Company determined certain indicators of potential impairment existed, warranting an interim impairment assessment of goodwill as of March 31, 2024. These indicators included a decline in the fiscal year 2024 and fiscal year 2025 forecast, in the outlook for sales and operating performance relative to our business plan and a deterioration in general macroeconomic conditions, including rising interest rates and inflationary pressures on labor and supply costs. As a result of these macroeconomic factors, specifically a decline in the fiscal year 2024 and fiscal year 2025 forecast, the Company performed a goodwill impairment analysis as of March 31, 2024 consistent with the Company’s approach for annual impairment testing, including similar models and inputs. Based on such analysis, the Company determined that its estimated fair value for the Maverick Boat Group reporting unit was less than its carrying value as of March 31, 2024 and the Company recognized an impairment charge of $ 49,189 for the three months ended March 31, 2024. For the fiscal year ended June 30, 2024, the Company performed a qualitative assessment on the remaining reporting units which indicated that the fair value of its reporting units more likely than not exceeded their respective carrying amounts For the fiscal year ended June 30, 2023, the Company performed a quantitative assessment on the Maverick Boat Group reporting unit which indicated that the fair value of its reporting unit more likely than not exceeded its carrying amount. For the fiscal year ended June 30, 2023, the Company performed a qualitative assessment on the remaining reporting units which indicated that the fair value of its reporting units more likely than not exceeded their respective carrying amounts. The Company did no t recognize any goodwill impairment charges in the fiscal year ended June 30, 2023. 71 Table of Contents Intangible Assets Intangible assets consist primarily of dealer relationships, product trade names, legal and contractual rights surrounding a patent and a non-compete agreement. These assets are recorded at their estimated fair values at the acquisition dates using the income approach. Definite-lived intangible assets are being amortized using the straight-line method based on their estimated useful lives ranging from 10 to 20 years. The estimated useful lives of dealer relationships consider the average length of dealer relationships at the time of acquisition, historical rates of dealer attrition and retention, the Company’s history of renewal and extension of dealer relationships, as well as competitive and economic factors resulting in a range of useful lives. The estimated useful lives of the Company’s trade names are based on a number of factors including the competitive environment. The estimated useful lives of legal and contractual rights are estimated based on the benefits that the patent provides for its remaining terms unless competitive, technological obsolescence or other factors indicate a shorter life. The useful life of the non-compete agreement is based on a ten-year agreement entered into by the Company and former owner of the Licensee as part of the acquisition. In addition, the Company has indefinite-lived intangible assets for acquired trade names. Management, assisted by third-party valuation specialists, determined the estimated fair values of separately identifiable intangible assets at the date of acquisition under the income approach. Significant data and assumptions used in the valuations included cost, market and income comparisons, discount rates, royalty rates and management forecasts. Discount rates for each intangible asset were selected based on judgment of relative risk and approximate rates of returns investors in the subject assets might require. The royalty rates were based on historical and projected sales and profits of products sold and management’s assessment of the intangibles’ importance to the sales and profitability of the product. Management provided forecasts of financial data pertaining to assets, liabilities and income statement balances to be utilized in the valuations. While management believes the assumptions, estimates, appraisal methods and ensuing results are appropriate and represent the best evidence of fair value in the circumstances, modification or use of other assumptions or methods could have yielded different results. The carrying amount of definite-lived intangible assets is reviewed whenever circumstances arise that indicate the carrying amount of an asset may not be recoverable. The carrying value of these assets is compared to the undiscounted future cash flows the assets are expected to generate. If the asset is considered to be impaired, the carrying value is compared to the fair value and this difference is recognized as an impairment loss. Intangible assets not subject to amortization are assessed for impairment at least annually and whenever events or changes in circumstances indicate that it is more likely than not that an asset may be impaired. The impairment test for indefinite-lived intangible assets consists of a comparison of the fair value of the intangible asset with its carrying amount. An impairment loss is recognized for the amount by which the carrying value exceeds the fair value of the asset. During the Company's interim impairment evaluation of indefinite-lived intangibles, the Company recorded an impairment charge to trade names of $ 39,200 for the three months ended March 31, 2024 related to the Maverick Boat Group reporting unit. The impairment was principally a result of a decline, in the fiscal year 2024 and fiscal year 2025 forecast, in the outlook for sales and operating performance relative to our business plan. This charge was included in Goodwill and other intangible asset impairment on the consolidated statements of operations and comprehensive income (loss). No other intangible asset impairment loss was recorded. There was no impairment loss recognized on intangible assets for the fiscal years ended June 30, 2025 and 2023. Long-Lived Assets Other than Intangible Assets The Company assesses the potential for impairment of its long-lived assets if facts and circumstances, such as declines in sales, earnings, or cash flows or adverse changes in the business climate, suggest that they may be impaired. A current expectation that, more likely than not, a long-lived asset (asset group) will be sold or otherwise disposed of significantly before the end of its previously estimated useful life will also trigger a review for impairment. The Company performs its assessment by comparing the book value of the asset groups to the estimated future undiscounted cash flows associated with the asset groups. If any impairment in the carrying value of its long-lived assets is indicated, the assets would be adjusted to an estimate of fair value. The Company recognized $ 8,735 in abandonment of construction in process charges related to the ERP (Enterprise resource planning) project during the year ended June 30, 2024. The charges pertain to long-lived assets including software and other capitalized costs specifically tied to the project and is captured in the Abandonment of construction in process line of the Company's Consolidated Statements of Operations and Comprehensive Income (Loss). Dealer Incentives The Company provides for various structured dealer rebates and sales promotions incentives, which are recognized as a component of sales in measuring the amount of consideration the Company expects to receive in exchange for transferring goods, at the time of sale to the dealer. Examples of such programs include rebates, seasonal discounts and other allowances. 72 Table of Contents Dealer rebates and sales promotion expenses are estimated based on current programs and historical achievement and/or usage rates. Actual results may differ from these estimates if market conditions dictate the need to enhance or reduce sales promotion and incentive programs or if dealer achievement or other items vary from historical trends. Free floor plan financing incentives include payments to the lenders providing floor plan financing to the dealers or directly to the dealers themselves. Free floor plan financing incentives are estimated at the time of sale to the dealer based on the expected expense to the Company over the term of the free flooring period and are recognized as a reduction in sales. The Company accounts for both incentive payments directly to dealers and payment to third party lenders in this manner. Dealer incentives are included in accrued expenses on the Company's consolidated balance sheets. Changes in the Company’s accrual for dealer rebates were as follows: Fiscal Year Ended June 30, 2025 2024 2023 Balance at beginning of year $ 27,482 $ 13,715 $ 15,852 Add: Dealer rebate incentives 3,873 28,385 32,953 Less: Dealer rebates paid ( 25,725 ) ( 14,618 ) ( 35,090 ) Balance at end of year $ 5,630 $ 27,482 $ 13,715 Changes in the Company’s accrual for floor financing were as follows: Fiscal Year Ended June 30, 2025 2024 2023 Balance at beginning of year $ 1,429 $ 1,134 $ 187 Add: Flooring incentives 13,811 17,590 13,926 Less: Flooring paid ( 13,813 ) ( 17,295 ) ( 12,979 ) Balance at end of year $ 1,427 $ 1,429 $ 1,134 Tax Receivable Agreement As a result of exchanges of LLC Units into Class A Common Stock and purchases by the Company of LLC Units from holders of LLC Units, the Company will become entitled to a proportionate share of the existing tax basis of the assets of the LLC at the time of such exchanges or purchases. In addition, such exchanges or purchases of LLC Units are expected to result in increases in the tax basis of the assets of the LLC that otherwise would not have been available. These increases in tax basis may reduce the amount of tax that the Company would otherwise be required to pay in the future. These increases in tax basis may also decrease gains (or increase losses) on future dispositions of certain capital assets to the extent tax basis is allocated to those capital assets. In connection with the recapitalization the Company completed in connection with its IPO, the Company entered into a tax receivable agreement with the pre-IPO owners of the LLC that provides for the payment by the Company to the pre-IPO owners (or any permitted assignees) of 85 % of the amount of the benefits, if any, that the Company deems to realize as a result of (i) increases in tax basis and (ii) certain other tax benefits, including those attributable to payments, under the tax receivable agreement. These contractual payment obligations are the Company's obligations and are not obligations of the LLC, and are accounted for in accordance with ASC 450, Contingencies , since the obligations were deemed to be probable and reasonably estimable. For purposes of the tax receivable agreement, the benefit deemed realized by the Company will be computed by comparing its actual income tax liability (calculated with certain assumptions) to the amount of such taxes that it would have been required to pay had there been no increase to the tax basis of the assets of the LLC as a result of the purchases or exchanges, and had the Company not entered into the tax receivable agreement. The timing and/or amount of aggregate payments due under the tax receivable agreement may vary based on a number of factors, including the amount and timing of the taxable income the Company generates in the future and the tax rate then applicable and amortizable basis. The term of the tax receivable agreement will continue until all such tax benefits have been utilized or expired, unless the Company exercises its right to terminate the tax receivable agreement for an amount based on the agreed payments remaining to be made under the agreement. In certain mergers, asset sales or other forms of business combinations or other changes of control, the Company (or its successor) would owe to the pre-IPO owners of the LLC (or any permitted assignees) a lump-sum 73 Table of Contents payment equal to the present value of all forecasted future payments that would have otherwise been made under the tax receivable agreement that would be based on certain assumptions, including a deemed exchange of all LLC Units and that the Company would have had sufficient taxable income to fully utilize the deductions arising from the increased tax basis and other tax benefits related to entering into the tax receivable agreement. Income Taxes Malibu Boats, Inc. is taxed as a C corporation for U.S. income tax purposes and is therefore subject to both federal and state taxation at a corporate level. Following the IPO, the LLC continues to operate in the United States as a partnership for U.S. federal income tax purposes. Maverick Boat Group is taxed as a C corporation for U.S. income tax purposes and is separately subject to both federal and state taxation at a corporate level. The Company files various federal and state tax returns, including some returns that are consolidated with subsidiaries. The Company accounts for the current and deferred tax effects of such returns using the asset and liability method. Significant judgments and estimates are required in determining the Company's current and deferred tax assets and liabilities, which reflect management's best assessment of the estimated future taxes it will pay. These estimates are updated throughout the year to consider income tax return filings, its geographic mix of earnings, legislative changes and other relevant items. The Company recognizes deferred tax assets and liabilities based on the differences between the financial statement carrying amounts of assets and liabilities and the amounts applicable for income tax purposes. Deferred tax assets represent items to be realized as a tax deduction or credit in future tax returns. Realization of the deferred tax assets ultimately depends on the existence of sufficient taxable income of the appropriate character in either the carryback or carryforward period. Each quarter the Company analyzes the likelihood that its deferred tax assets will be realized. A valuation allowance is recorded if, based on the weight of all available positive and negative evidence, it is more likely than not (a likelihood of more than 50%) that some portion, or all, of a deferred tax asset will not be realized (see Note 13). On an annual basis, the Company performs a comprehensive analysis of all forms of positive and negative evidence based on year end results. During each interim period, the Company updates its annual analysis for significant changes in the positive and negative evidence. If the Company later determines that realization is more likely than not for deferred tax assets with a valuation allowance, the related valuation allowance will be reduced. Conversely, if the Company determines that it is more likely than not that the Company will not be able to realize a portion of its deferred tax assets, the Company will increase the valuation allowance. The Company recognizes a tax benefit associated with an uncertain tax position when, in its judgment, it is more likely than not that the position will be sustained based upon the technical merits of the position. For a tax position that meets the more-likely-than-not recognition threshold, the Company initially and subsequently measures the income tax benefit as the largest amount that it judges to have a greater than 50% likelihood of being realized. The liability associated with unrecognized tax benefits is adjusted periodically due to changing circumstances, such as the progress of tax audits, case law developments and new or emerging legislation. Such adjustments are recognized entirely in the period in which they are identified. The Company's income tax provision includes the net impact of changes in the liability for unrecognized tax benefits. The Company has filed federal and state income tax returns that remain open to examination for fiscal years 2022 through 2024, while its subsidiaries, Malibu Boats Holdings, LLC and Malibu Boats Pty Ltd., remain open to examination for years 2021 through 2024. The Company considers an issue to be resolved at the earlier of the issue being “effectively settled,” settlement of an examination, or the expiration of the statute of limitations. Upon resolution, unrecognized tax benefits will be reversed as a discrete event. The Company's liability for unrecognized tax benefits is generally presented as noncurrent. However, if it anticipates paying cash within one year to settle an uncertain tax position, the liability is presented as current. The Company classifies interest and penalties recognized on the liability for unrecognized tax benefits as income tax expense. Revenue Recognition Revenue is recognized as performance obligations under the terms of contracts with customers are satisfied; this occurs when control of promised goods (boats, parts, or other) is transferred to the customer, which is upon shipment. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. The Company generally manufactures products based on specific orders from dealers and often ships completed 74 Table of Contents products only after receiving credit approval from financial institutions. The amount of consideration the Company receives and revenue it recognizes varies with changes in marketing incentives and rebates it offers to its dealers and their customers. Dealers generally have no rights to return unsold boats. From time to time, however, the Company may accept returns in limited circumstances and at the Company’s discretion under its warranty policy, which generally limits returns to instances of manufacturing defects. The Company may be obligated, in the event of default by a dealer, to accept returns of unsold boats under its repurchase commitment to floor plan financing providers, who are able to obtain such boats through foreclosure. The Company accrues returns when a repurchase and return, due to the default of one of its dealers, is determined to be probable and the amount of the return is reasonably estimable. Refer to Note 9 and Note 17 related to the Company’s product warranty and repurchase commitment obligations, respectively. Revenue associated with sales of materials, parts, boats or engine products sold under the Company’s exclusive manufacturing and distribution agreement with its Australian subsidiary are eliminated in consolidation. The Company earns royalties on boats shipped with the Company's proprietary wake surfing technology under licensing agreements with various marine manufacturers. Royalty income is recognized when products are used or sold with the Company's patented technology by other boat manufacturers and industry suppliers. The usage of the Company's technology satisfies the performance obligation in the contract. See Note 2 for more information. Delivery Costs Shipping and freight costs are included in cost of sales in the accompanying consolidated statements of operations and comprehensive income (loss). Advertising Costs Advertising costs are expensed as incurred. Advertising expenses are included in selling and marketing expenses and were not material for the fiscal years ended June 30, 2025, 2024, and 2023. Fair Value of Financial Instruments Financial instruments for which the Company did not elect the fair value option include accounts receivable, prepaid expenses and other current assets, credit facilities, accounts payable, accrued expenses and other current liabilities. The carrying amounts of these financial instruments approximate their fair values as a result of their short-term nature or variable interest rates. Fair Value Measurements The Company applies the provisions of ASC Topic 820, Fair Value Measurement , for fair value measurements of financial assets and financial liabilities, and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the consolidated financial statements on a recurring basis. ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 also establishes a framework for measuring fair value and expands disclosures about fair value measurements. In addition to the financial assets and liabilities measured on a recurring basis, certain nonfinancial assets and liabilities are to be measured at fair value on a nonrecurring basis in accordance with applicable GAAP. This includes items such as nonfinancial assets and liabilities initially measured at fair value in a business combination (but not measured at fair value in subsequent periods) and nonfinancial long-lived asset groups measured at fair value for an impairment assessment. In general, non-financial assets including goodwill, other intangible assets and property and equipment are measured at fair value when there is an indication of impairment and are recorded at fair value only when any impairment is recognized. Equity-Based Compensation The Company expenses employee share-based awards under ASC Topic 718, Compensation—Stock Compensation , which requires compensation cost for the grant-date fair value of share-based awards to be recognized over the requisite service period. Stock options granted to executives January 14, 2019 were valued using the Black-Scholes option pricing model. Stock awards granted on November 4, 2024, November 6, 2023 and November 3, 2022 based on total shareholder return were valued using a Monte Carlo simulation. The fair value of restricted stock unit awards granted under the Company's Long Term Incentive Plans are measured based on the market price of the Company’s stock on the grant date. See Note 15 for more information. 75 Table of Contents Foreign Currency Translation The functional currency for the Company's consolidated foreign subsidiary is the applicable local currency. The assets and liabilities are translated at the foreign exchange rate in effect at the applicable reporting date, and the consolidated statements of operations and comprehensive income (loss) and cash flows are translated at the average exchange rate in effect during the applicable period. Exchange rate fluctuations on translating the foreign currency financial statements into U.S. dollars that result in unrealized gains or losses are referred to as translation adjustments. Cumulative translation adjustments are reflected as a component of "Accumulated other comprehensive loss, net of tax," in the stockholders' equity section of the accompanying consolidated balance sheets and periodic changes are included in comprehensive income (loss). Comprehensive Income (Loss) Components of comprehensive income (loss) include net income (loss) and foreign currency translation adjustments. The Company has chosen to disclose comprehensive income (loss) in a single continuous consolidated statement of operations and comprehensive income (loss). Recent Accounting Pronouncements In November, 2023, the FASB issued Accounting Standards Update ("ASU") No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant expenses. The updated standard is effective for annual periods beginning in fiscal 2025 and interim periods beginning in the first quarter of fiscal 2026. Early adoption is permitted. We adopted ASU 2023-07 in the fourth quarter of fiscal 2025. The adoption of this guidance resulted in additional financial statement disclosures and had no impact to our consolidated financial condition, results of operations, or cash flows. See Note 19 - Segment Reporting which includes the disclosures resulting from our adoption of this guidance. In December, 2023, the FASB issued ASU No. 2023-09 “ Income Taxes (Topic 740): Improvements to Income Tax Disclosures” which requires two primary enhancements of 1) disaggregated information on a reporting entity’s effective tax rate reconciliation, and 2) information on income taxes paid. For public business entities, the new requirements will be effective for annual periods beginning after December 15, 2024. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively. Early adoption is permitted. The Company is currently assessing the pronouncement and its impact on its income tax disclosures and related cash flow disclosures, but it does not impact the Company’s results of operations, or financial condition. In November 2024, the FASB issued ASU No. 2024-03 “Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses " which requires disclosure, in the notes to financial statements, of specified information about certain costs and expenses. The updated standard is effective for annual periods beginning after December 15, 2026 and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the effect of adopting this ASU. There are no other new accounting pronouncements that are expected to have a significant impact on the Company's consolidated financial statements and related disclosures. 76 Table of Contents 2. Revenue Recognition The following table disaggregates the Company's revenue by major product type and geography: Fiscal Year Ended June 30, 2025 Malibu Saltwater Fishing Cobalt Consolidated Revenue by product: Boat and trailer sales $ 296,980 $ 277,218 $ 212,128 $ 786,326 Part and other sales 15,718 2,417 3,100 21,235 Net sales $ 312,698 $ 279,635 $ 215,228 $ 807,561 Revenue by geography: North America $ 285,820 $ 265,250 $ 207,588 $ 758,658 International 26,878 14,385 7,640 48,903 Net sales $ 312,698 $ 279,635 $ 215,228 $ 807,561 Fiscal Year Ended June 30, 2024 Malibu Saltwater Fishing Cobalt Consolidated Revenue by product: Boat and trailer sales $ 264,811 $ 325,993 $ 219,188 $ 809,992 Part and other sales 14,320 1,549 3,174 19,043 Net sales $ 279,131 $ 327,542 $ 222,362 $ 829,035 Revenue by geography: North America $ 249,841 $ 314,014 $ 215,255 $ 779,110 International 29,290 13,528 7,107 49,925 Net sales $ 279,131 $ 327,542 $ 222,362 $ 829,035 Fiscal Year Ended June 30, 2023 Malibu Saltwater Fishing Cobalt Consolidated Revenue by product: Boat and trailer sales $ 618,001 $ 447,587 $ 299,028 $ 1,364,616 Part and other sales 18,246 1,569 3,934 23,749 Net sales $ 636,247 $ 449,156 $ 302,962 $ 1,388,365 Revenue by geography: North America $ 582,092 $ 440,449 $ 292,335 $ 1,314,876 International 54,155 8,707 10,627 73,489 Net sales $ 636,247 $ 449,156 $ 302,962 $ 1,388,365 Boat and Trailer Sales Consists of sales of boats and trailers to the Company's dealer network, net of sales returns, discounts, rebates and free flooring incentives. Boat and trailer sales also includes optional boat features. Sales returns consist of boats returned by dealers under the Company's warranty program. Rebates, free flooring and discounts are incentives that the Company provides to its dealers based on sales of eligible products. 77 Table of Contents Part and Other Sales Consists primarily of parts and accessories sales, royalty income and clothing sales. Parts and accessories sales include replacement and aftermarket boat parts and accessories sold to the Company's dealer network. Royalty income is earned from license agreements with various boat manufacturers, including Nautique, Chaparral, MasterCraft, and Tige related to the use of the Company's intellectual property. 3. Non-controlling Interest The non-controlling interest on the consolidated statements of operations and comprehensive income (loss) represents the portion of earnings or loss attributable to the economic interest in the Company's subsidiary, the LLC, held by the non-controlling LLC Unit holders. Non-controlling interest on the consolidated balance sheets represents the portion of net assets of the Company attributable to the non-controlling LLC Unit holders, based on the portion of the LLC Units owned by such Unit holders. The ownership of the LLC is summarized as follows: As of June 30, 2025 As of June 30, 2024 Units Ownership % Units Ownership % Non-controlling LLC unit holders ownership in Malibu Boats Holdings, LLC 276,419 1.4 % 321,419 1.6 % Malibu Boats, Inc. ownership in Malibu Boats Holdings, LLC 19,225,848 98.6 % 20,181,542 98.4 % 19,502,267 100.0 % 20,502,961 100.0 % Balance of non-controlling interest as of June 30, 2023 $ 7,871 Allocation of loss to non-controlling LLC Unit holders for period ( 531 ) Distributions paid and payable to non-controlling LLC Unit holders for period ( 114 ) Reallocation of non-controlling interest ( 2,516 ) Balance of non-controlling interest as of June 30, 2024 4,710 Allocation of income to non-controlling LLC Unit holders for period 361 Reallocation of non-controlling interest ( 699 ) Balance of non-controlling interest as of June 30, 2025 $ 4,372 Issuance of Additional LLC Units Under the first amended and restated limited liability company agreement of the LLC, as amended (the “LLC Agreement”), the Company is required to cause the LLC to issue additional LLC Units to the Company when the Company issues additional shares of Class A Common Stock. Other than in connection with the issuance of Class A Common Stock in connection with an equity incentive program, the Company must contribute to the LLC net proceeds and property, if any, received by the Company with respect to the issuance of such additional shares of Class A Common Stock. The Company must cause the LLC to issue a number of LLC Units equal to the number of shares of Class A Common Stock issued such that, at all times, the number of LLC Units held by the Company equals the number of outstanding shares of Class A Common Stock. During the fiscal year ended June 30, 2025, the Company caused the LLC to issue a total of 193,914 LLC Units to the Company in connection with (i) the Company's issuance of Class A Common Stock to non-employee directors for their services, (ii) the issuance of Class A Common Stock for the vesting of awards granted under the Malibu Boats, Inc. incentive plans, (iii) the issuance of restricted Class A Common Stock granted under the incentive plans, (iv) the issuance of Class A Common Stock to LLC Unit holders in exchange of their LLC Units and (v) the issuance of Class A Common Stock for the exercise of options granted under the incentive plans. During fiscal year 2025, 6,885 LLC Units were canceled in connection with the vesting of share-based equity awards to satisfy employee tax withholding requirements, 50,200 LLC Units were canceled in connection with stock awards with a performance condition that was deemed to not be achieved and 94,732 LLC Units were cancelled in connection with the forfeiture of stock awards. In connection with the cancellation of LLC Units described above, an equivalent 151,817 treasury shares were retired in accordance with the LLC Agreement. Also during fiscal year 2025, 997,791 LLC Units were redeemed 78 Table of Contents and canceled by the LLC in connection with the purchase and retirement of treasury shares under the Company's stock repurchase programs. Distributions and Other Payments to Non-controlling Unit Holders Distributions for Taxes As a limited liability company (treated as a partnership for income tax purposes), the LLC does not incur significant federal, state or local income taxes, as these taxes are primarily the obligations of its members. As authorized by the LLC Agreement, the LLC is required to distribute cash, to the extent that the LLC has cash available, on a pro rata basis, to its members to the extent necessary to cover the members’ tax liabilities, if any, with respect to their share of LLC earnings. The LLC makes such tax distributions to its members based on an estimated tax rate and projections of taxable income. If the actual taxable income of the LLC multiplied by the estimated tax rate exceeds the tax distributions made in a calendar year, the LLC may make true-up distributions to its members, if cash or borrowings are available for such purposes. As of June 30, 2025 and 2024, the tax distributions payable to non-controlling LLC Unit holders wer e $ 0 . During the fiscal years ended June 30, 2025, 2024, and 2023, tax distributions paid to the non-controlling LLC Unit holders were $ 0 , $ 890 , and $ 3,401 , respectively. Other Distributions Pursuant to the LLC Agreement, the Company has the right to determine when distributions will be made to LLC members and the amount of any such distributions. If the Company authorizes a distribution, such distribution will be made to the members of the LLC (including the Company) pro rata in accordance with the percentages of their respective LLC Units. 79 Table of Contents 4. Inventories, net Inventories are stated at the lower of cost or net realizable value, determined on the first in, first out (“FIFO”) or weighted-average basis. Manufacturing cost includes materials, labor and manufacturing overhead. Unallocated overhead and abnormal costs are expensed as incurred. Inventories consisted of the following: As of June 30, 2025 2024 Raw materials $ 97,089 $ 107,245 Work in progress 24,890 20,683 Finished goods 20,184 16,392 Inventory subject to return 1 — 1,253 Total inventories $ 142,163 $ 145,573 (1) Represents accrual related to Tommy's Boats. See Note 17 of our audited consolidated financial statements included elsewhere in this Annual Report on Form 10-K for additional information. 80 Table of Contents 5. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: As of June 30, 2025 2024 Prepaid expenses $ 4,257 $ 5,808 Insurance receivables 8,375 — Other receivables 2,002 662 Total prepaid expenses and other current assets $ 14,634 $ 6,470 Insurance receivables include approximately $ 7,800 related to a settlement amount associated with a claim that the Company has filed with its insurance carrier and, based on communications with the insurer and its own assessment, believes that recovery of the loss is probable. For more information, refer to Note 17 of our consolidated financial statements included elsewhere in this report. 6. Property, Plant, and Equipment, net Property, plant, and equipment acquired outside of acquisition are stated at cost. When property, plant, and equipment is retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is accounted for in the consolidated statements of operations and comprehensive income (loss). Major additions are capitalized; maintenance, repairs and minor improvements are charged to operating expenses as incurred if they do not increase the life or productivity of the related capitalized asset. Depreciation on leasehold improvements is computed using the straight-line method based on the lesser of the remaining lease term or the estimated useful life and depreciation of equipment is computed using the straight-line method over the estimated useful life as follows: Years Building 20 Leasehold improvements Shorter of useful life or lease term Machinery and equipment 3 - 5 Furniture and fixtures 3 - 5 The Company accounts for the impairment and disposition of long-lived assets in accordance with ASC Topic 360, Property, Plant, and Equipment . In accordance with ASC Topic 360, long-lived assets to be held are reviewed for events or changes in circumstances that indicate that their carrying value may not be recoverable. The Company periodically reviews for indicators and, if indicators are present, tests the carrying value of long-lived assets, assessing their net realizable values based on estimated undiscounted cash flows over their remaining estimated useful lives. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is measured as the amount by which the carrying amount of the asset exceeds the fair value of the asset, based on discounted cash flows. During fiscal year 2024, the Company abandoned a Company-wide ERP project. As such, the Company recorded a non-cash charge of $ 8,735 associated with the abandonment of the ERP project. The abandonment pertains to long-lived assets including software and other capitalized costs specifically tied to the project and is captured in the abandonment of construction in process line of the Company's Consolidated Statements of Operations and Comprehensive Income (Loss). No impairment charges were recorded for the fiscal years ended June 30, 2025 and 2023 in the Company’s consolidated financial statements. Property, plant, and equipment, net consisted of the following: 81 Table of Contents As of June 30, 2025 2024 Land $ 4,716 $ 4,890 Building and leasehold improvements 171,685 170,958 Machinery and equipment 143,526 118,123 Furniture and fixtures 16,609 15,466 Construction in process 35,189 43,511 371,725 352,948 Less accumulated depreciation ( 135,848 ) ( 108,347 ) Property, plant and equipment, net $ 235,877 $ 244,601 Included within the current asset section of our consolidated balance sheet at June 30, 2025 is an amount classified as assets held for sale totaling $ 3.1 million. The property is valued at its carrying value, which was less than the fair value minus costs to sell. The assets held for sale consist of the land and building from the former Malibu Electronics (included within the Malibu segment) manufacturing building located in Alexander City, Alabama. The Company no longer has a use for this building as the current Malibu Electronics manufacturing building is now located in Loudon, Tennessee. The assets meet the criteria for classification as held for sale as the Company has committed to a plan to sell the assets and they are available for immediate sale in their present obligation and expected to sell within 12 months. Depreciation expense was $ 31,794 , $ 26,178 and $ 21,912 for the fiscal years ended June 30, 2025, 2024 and 2023, respectively, substantially all of which was recorded in cost of sales. 7. Goodwill and Other Intangible Assets, net The changes in the carrying amount of goodwill for the fiscal years ended June 30, 2025 and 2024 were as follows: Malibu Saltwater Fishing Cobalt Consolidated Goodwill as of June 30, 2023 $ 12,072 $ 68,714 $ 19,791 $ 100,577 Impairment related to Maverick Boat Group — ( 49,189 ) — $ ( 49,189 ) Effect of foreign currency changes on goodwill 27 — — 27 Goodwill as of June 30, 2024 12,099 19,525 19,791 51,415 Effect of foreign currency changes on goodwill ( 109 ) — — ( 109 ) Goodwill as of June 30, 2025 $ 11,990 $ 19,525 $ 19,791 $ 51,306 82 Table of Contents The components of other intangible assets were as follows: As of June 30, Estimated Useful Life (in years) Weighted Average Remaining Useful Life (in years) 2025 2024 Definite-lived intangibles: Dealer relationships $ 131,696 $ 131,735 15 - 20 13.6 Patent 2,600 2,600 15 7.0 Trade name 100 100 15 5.0 Non-compete agreement 46 47 10 0.0 Total 134,442 134,482 Less: Accumulated amortization ( 44,808 ) ( 38,033 ) Total definite-lived intangible assets, net 89,634 96,449 Indefinite-lived intangible: Trade names 118,200 118,200 Less: Impairment charge ( 39,200 ) ( 39,200 ) Total other intangible assets $ 168,634 $ 175,449 During the three months ended March 31, 2024, the Company determined certain indicators of potential impairment existed, warranting an interim impairment assessment of goodwill as of March 31, 2024. The Company performed a goodwill impairment analysis as of March 31, 2024 consistent with the Company’s approach for annual impairment testing, including similar models and inputs. Based on such analysis, the Company determined that its estimated fair value for the Maverick Boat Group reporting unit was less than its carrying value as of March 31, 2024, and the Company recognized an impairment charge of $ 49,189 for the three months ended March 31, 2024. Additionally, during the Company's interim impairment evaluation of indefinite-lived intangibles, the Company recorded an impairment charge on trade names of $ 39,200 related to the Maverick Boat Group reporting unit. This charge was included in Goodwill and other intangible asset impairment on the consolidated statements of operations and comprehensive income (loss). No other intangible asset impairment loss was recorded in fiscal years 2025, 2024 or 2023. For more information, refer to Note 1 of our consolidated financial statements included elsewhere in this report. Amortization expense recognized on all amortizable intangibles was $ 6,799 , $ 6,811 and $ 6,808 for the fiscal years ended June 30, 2025, 2024 and 2023, respectively. Estimated future amortization expenses as of June 30, 2025 are as follows: Fiscal Year As of June 30, 2025 2026 $ 6,800 2027 6,800 2028 6,800 2029 6,800 2030 6,704 2031 and thereafter 55,730 $ 89,634 83 Table of Contents 8. Accrued Expenses Accrued expenses consisted of the following: As of June 30, 2025 2024 Warranties $ 40,970 $ 37,967 Dealer incentives 7,057 28,911 Accrued compensation 15,438 13,791 Current operating lease liabilities 2,408 2,177 Accrued legal and professional fees 33,729 22,467 Customer deposits 3,508 4,270 Government grant 4,089 5,867 Other accrued expenses 2,571 3,980 Total accrued expenses $ 109,770 $ 119,430 Accrued legal and professional fees include approximately $ 21,000 in insurance coverage proceeds that are subject in certain cases to reservations of rights by the insurance carriers. The proceeds will be considered a liability in accrued expenses until the resolution of the litigation. Accrued legal and professional fees also includes approximately $ 7,800 related to a settlement amount associated with a claim that the Company has filed with its insurance carrier and, based on communications with the insurer and its own assessment, believes that recovery of the loss is probable. Additionally, accrued legal and professional fees include approximately $ 3,500 related to the settlement agreement with Mark E. Andrews, Chapter 11 Trustee (the “Trustee”) for Tommy’s Fort Worth LLC and its affiliate debtors, which agreement was approved by the United States Bankruptcy Court of the Northern District of Texas, Fort Worth Division (the "Bankruptcy Court") and is subject to certain conditions. For more information, refer to Note 17 of our consolidated financial statements included elsewhere in this report. Government grant includes approximately $ 4,089 related to an Economic Development Grant to be paid by the State of Tennessee in relation to the Company's recent purchase of a production facility in Roane County, Tennessee and the moving production of certain models of Cobalt boats from Kansas to Tennessee. The grant requires the Company to create and maintain a specified number of jobs in order to retain the grant. The accrued liability will be relieved as the Company satisfies headcount requirements. 9. Product Warranties The Company's Malibu and Axis brand boats have a limited warranty for a period of up to five years . The Company's Cobalt brand boats have (1) a structural warranty of up to ten years which covers the hull, deck joints, bulkheads, floor, transom, stringers, and motor mount, and (2) a five year bow-to-stern warranty on all components manufactured or purchased (excluding hull and deck structural components), including canvas and upholstery. Gelcoat is covered up to three years for Cobalt and one year for Malibu and Axis. Pursuit brand boats have (1) a limited warranty for a period of up to five years on structural components such as the hull, deck and defects in the gelcoat surface of the hull bottom and (2) a bow-to-stern warranty of two years (excluding hull and deck structural components). Maverick, Pathfinder and Hewes brand boats have (1) a limited warranty for a period of up to five years on structural components such as the hull, deck and defects in the gelcoat surface of the hull bottom and (2) a bow-to-stern warranty of one year (excluding hull and deck structural components). Cobia brand boats have (1) a limited warranty for a period of up to ten years on structural components such as the hull, deck and defects in the gelcoat surface of the hull bottom and (2) a bow-to-stern warranty of three years (excluding hull and deck structural components). For each boat brand, there are certain materials, components or parts of the boat that are not covered by the Company's warranty and certain components or parts that are separately warranted by the manufacturer or supplier (such as the engine). Engines that the Company manufactures for Malibu and Axis models have a limited warranty of up to five years or five-hundred hours. The Company’s standard warranties require it or its dealers to repair or replace defective products during the warranty period at no cost to the consumer. The Company estimates warranty costs it expects to incur and records a liability for such costs at the time the product revenue is recognized. The Company utilizes historical claims trends and analytical tools to develop the estimate of its warranty obligation on a per boat basis, by brand and warranty year. Factors that affect the Company’s warranty liability include the number of units sold, historical and anticipated rates of warranty claims and cost per claim. The Company assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. Beginning in model year 2016, the Company increased the term of its limited warranty for Malibu brand boats from three years to five 84 Table of Contents years and for Axis brand boats from two years to five years . Beginning in model year 2018, the Company increased the term of its bow-to-stern warranty for Cobalt brand boats from three years to five years . Future warranty claims may differ from the Company's estimate of the warranty liability, which could lead to changes in the Company’s warranty liability in future periods. Changes in the Company’s product warranty liability, which are included in accrued expenses in the accompanying consolidated balance sheets, were as follows: Fiscal Year Ended June 30, 2025 2024 2023 Beginning balance $ 37,967 $ 41,709 $ 38,673 Add: Warranty Expense 29,658 23,744 24,812 Less: Warranty claims paid ( 26,655 ) ( 27,486 ) ( 21,776 ) Ending balance $ 40,970 $ 37,967 $ 41,709 10. Financing Outstanding debt consisted of the following: As of June 30, 2025 2024 Term loan $ — $ — Revolving credit loan 18,000 — Total debt 18,000 — Less current maturities — — Long-term debt less current maturities $ 18,000 $ — Long-Term Debt On July 8, 2022, Boats LLC entered into a Third Amended and Restated Credit Agreement (the “Credit Agreement”) that amended and restated its second amended and restated credit agreement dated as of June 28, 2017. The Credit Agreement increased the borrowing capacity of the revolving credit facility from $ 170,000 to $ 350,000 . Boats LLC has the option to request that lenders increase the amount available under the revolving credit facility by, or obtain incremental term loans of, up to $ 200,000 , subject to the terms of the Credit Agreement and only if existing or new lenders choose to provide additional term or revolving commitments. As of June 30, 2025, the Company had $ 18,000 outstanding under its revolving credit facility and $ 1,697 in outstanding letters of credit with $ 330,303 available for borrowing. The revolving credit facility matures on July 8, 2027. The obligations of Boats LLC under the Credit Agreement are guaranteed by the LLC, and, subject to certain exceptions, the present and future domestic subsidiaries of Boats LLC, and all such obligations are secured by substantially all of the assets of the LLC, Boats LLC and such subsidiary guarantors. Malibu Boats, Inc. is not a party to the Credit Agreement. Borrowings under the Credit Agreement bear interest at a rate equal to either, at the Company's option, (i) the highest of the prime rate, the Federal Funds Rate (as defined in the Credit Agreement) plus 0.5 %, or one-month Term SOFR (as defined in the Credit Agreement) plus 1 % (the “Base Rate”) or (ii) SOFR (as defined in the Credit Agreement), in each case plus an applicable margin ranging from 1.25 % to 2.00 % with respect to SOFR borrowings and 0.25 % to 1.00 % with respect to Base Rate borrowings. The applicable margin is based upon the consolidated leverage ratio of the LLC and its subsidiaries. As of June 30, 2025, the interest rate on the Company’s revolving credit facility was 7.75 %. The Company is required to pay a commitment fee for any unused portion of the revolving credit facility which ranges from 0.15 % to 0.30 % per annum, depending on the LLC’s and its subsidiaries’ consolidated leverage ratio. The Credit Agreement contains certain customary representations and warranties, and notice requirements for the occurrence of specific events such as the occurrence of any event of default or pending or threatened litigation. The Credit Agreement also requires compliance with certain customary financial covenants consisting of a minimum ratio of EBITDA to interest expense and a maximum ratio of total debt to EBITDA. The Credit Agreement contains certain customary restrictive covenants regarding indebtedness, liens, fundamental changes, investments, share repurchases, dividends and distributions, disposition of assets, transactions with affiliates, negative pledges, hedging transactions, certain prepayments of indebtedness, accounting changes and governmental regulation. For example, the Credit Agreement generally prohibits the LLC, Boats LLC and the subsidiary guarantors from paying dividends or making distributions, including to the Company. The credit facility 85 Table of Contents permits, however, (i) distributions based on a member’s allocated taxable income, (ii) distributions to fund payments that are required under the LLC’s tax receivable agreement, (iii) purchase of stock or stock options of the LLC from former officers, directors or employees of loan parties or payments pursuant to stock option and other benefit plans up to $ 5,000 in any fiscal year, and (iv) repurchases of the Company's outstanding stock and LLC Units. In addition, the LLC may make unlimited dividends and distributions if its consolidated leverage ratio is 2.75 or less and certain other conditions are met, subject to compliance with certain financial covenants. The Credit Agreement also contains customary events of default. If an event of default has occurred and continues beyond any applicable cure period, the administrative agent may (i) accelerate all outstanding obligations under the Credit Agreement or (ii) terminate the commitments, amongst other remedies. Additionally, the lenders are not obligated to fund any new borrowing under the Credit Agreement while an event of default is continuing. Covenant Compliance As of June 30, 2025 and 2024, the Company was in compliance with the financial covenants contained in the Credit Agreement. 11. Leases The Company leases certain manufacturing facilities, warehouses, office space, land, and equipment. The Company determines if a contract is a lease or contains an embedded lease at the inception of the agreement. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets. The Company does not separate non-lease components from the lease components to which they relate, and instead accounts for each separate lease and non-lease component associated with that lease component as a single lease component for all underlying asset classes. The Company's lease liabilities do not include future lease payments related to options to extend or terminate lease agreements as it is not reasonably certain those options will be exercised. Other information concerning the Company's operating leases accounted for under ASC Topic 842, Leases is as follows: As of June 30, Classification 2025 2024 Assets Right-of-use assets Other assets $ 6,551 $ 6,883 Liabilities Current operating lease liabilities Accrued expenses $ 2,408 $ 2,177 Long-term operating lease liabilities Other liabilities 4,915 5,763 Total lease liabilities $ 7,323 $ 7,940 Fiscal Year Ended June 30, Classification 2025 2024 2023 Operating lease costs (1) Cost of sales $ 2,394 $ 2,537 $ 2,686 Selling and marketing, and general and administrative 787 838 878 Sublease income Other income, net ( 38 ) ( 38 ) ( 38 ) Cash paid for amounts included in the measurement of operating lease liabilities Cash flows from operating activities 2,667 2,661 2,555 (1) Includes short-term leases, which are insignificant, and are not included in the lease liability. 86 Table of Contents The lease liability for operating leases that contain variable escalating rental payments with scheduled increases that are based on the lesser of a stated percentage increase or the cumulative increase in an index, are determined using the stated percentage increase. The weighted average remaining lease term for the fiscal year ended June 30, 2025 and 2024 was 3.02 years and 3.60 years, respectively. As of June 30, 2025 and 2024, the weighted average discount rate determined based on the Company's incremental borrowing rate is 4.64 % and 3.67 %, respectively. Future annual minimum lease payments for the following fiscal years as of June 30, 2025 are as follows: Amount 2026 $ 2,691 2027 2,681 2028 1,935 2029 437 2030 146 2031 and thereafter — Total 7,890 Less imputed interest ( 567 ) Present value of lease liabilities $ 7,323 12. Tax Receivable Agreement Liability The Company has a Tax Receivable Agreement with the pre-IPO owners of the LLC that provides for the payment by the Company to the pre-IPO owners (or their permitted assignees) of 85 % of the amount of the benefits, if any, that the Company is deemed to realize as a result of (i) increases in tax basis and (ii) certain other tax benefits related to the Company entering into the Tax Receivable Agreement, including those attributable to payments under the Tax Receivable Agreement. These contractual payment obligations are obligations of the Company and not of the LLC. The Company's Tax Receivable Agreement liability was determined on an undiscounted basis in accordance with ASC 450, Contingencies , since the contractual payment obligations were deemed to be probable and reasonably estimable. For purposes of the Tax Receivable Agreement, the benefit deemed realized by the Company is computed by comparing the actual income tax liability of the Company (calculated with certain assumptions) to the amount of such taxes that the Company would have been required to pay had there been no increase to the tax basis of the assets of the LLC as a result of the purchases or exchanges, and had the Company not entered into the Tax Receivable Agreement. The following table reflects the changes to the Company's Tax Receivable Agreement liability: As of June 30, 2025 2024 Beginning balance $ 40,613 $ 43,465 Additions (reductions) to tax receivable agreement: Exchange of LLC Units for Class A Common Stock 167 1,320 Adjustment for change in estimated state tax rate or benefits ( 347 ) 36 Payment under tax receivable agreement — ( 4,208 ) 40,433 40,613 Less current portion under tax receivable agreement ( 271 ) — Ending balance $ 40,162 $ 40,613 The Tax Receivable Agreement further provides that, upon certain mergers, asset sales or other forms of business combinations or other changes of control, the Company (or its successor) would owe to the pre-IPO owners of the LLC a lump-sum payment equal to the present value of all forecasted future payments that would have otherwise been made under the Tax Receivable Agreement that would be based on certain assumptions, including a deemed exchange of LLC Units and that the Company would have sufficient taxable income to fully utilize the deductions arising from the increased tax basis and other tax benefits related to entering into the Tax Receivable Agreement. The Company also is entitled to terminate the Tax Receivable 87 Table of Contents Agreement, which, if terminated, would obligate the Company to make early termination payments to the pre-IPO owners of the LLC. In addition, a pre-IPO owner may elect to unilaterally terminate the Tax Receivable Agreement with respect to such pre-IPO owner, which would obligate the Company to pay to such existing owner certain payments for tax benefits received through the taxable year of the election. When estimating the expected tax rate to use in order to determine the tax benefit expected to be recognized from the Company’s increased tax basis as a result of exchanges of LLC Units by the pre-IPO owners of the LLC, the Company continuously monitors changes in its overall tax posture, including changes resulting from new legislation and changes as a result of new jurisdictions in which the Company is subject to tax. As of June 30, 2025 and 2024, the Company recorded deferred tax assets of $ 120,382 and $ 120,015 , respectively, associated with basis differences in assets upon acquiring an interest in the LLC and pursuant to making an election under Section 754 of the Internal Revenue Code of 1986 (the "Internal Revenue Code"), as amended. These basis differences are included in the overall partnership basis differences disclosed in Note 13. The aggregate Tax Receivable Agreement liability represents 85 % of the tax benefits that the Company expects to receive in connection with the Section 754 election. In accordance with the Tax Receivable Agreement, the next payment is anticipated to occur after considering net operating loss utilization and whether there is sufficient taxable income. 13. Income Taxes Malibu Boats, Inc. is taxed as a C corporation for U.S. income tax purposes and is therefore subject to both federal and state taxation at a corporate level. The LLC continues to operate in the United States as a partnership for U.S. federal income tax purposes. Maverick Boat Group is separately subject to U.S. federal and state income tax with respect to its net taxable income. Income taxes are computed in accordance with ASC Topic 740, Income Taxes , and reflect the net tax effects of temporary differences between the financial reporting carrying amounts of assets and liabilities and the corresponding income tax amounts. The Company has deferred tax assets and liabilities and maintains valuation allowances where it is more likely than not that all or a portion of deferred tax assets will not be realized. To the extent the Company determines that it will not realize the benefit of some or all of its deferred tax assets, such deferred tax assets will be adjusted through the Company’s provision for income taxes in the period in which this determination is made. On August 16, 2022, the Inflation Reduction Act of 2022 (the “Inflation Reduction Act”) was signed into law. The Inflation Reduction Act contains significant business tax provisions, including an excise tax on stock buybacks (1% for transactions beginning January 1, 2023), increased funding for IRS tax enforcement, expanded energy incentives promoting clean energy investment, and a 15% corporate minimum tax on certain large corporations. The effects of the new legislation were recognized upon enactment. The Company accrued $ 0.4 million excise tax for stock repurchases during fiscal years ended June 30, 2025. The Company did not recognize any significant impact to income tax expense for the fiscal years ended June 30, 2025 or June 30, 2024 relating to the Inflation Reduction Act. On July 4, 2025, the U.S. enacted H.R. 1 "A bill to provide for reconciliation pursuant to Title II of H. Con. Res. 14", commonly referred to as the One Big Beautiful Bill Act ("OBBBA"). The OBBBA contains a broad range of provisions affecting businesses, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, including provisions related to bonus depreciation and research and development expensing, as well as modifications to foreign derived intangible income and the restoration of other favorable tax provisions. The legislation has multiple effective dates, with certain provisions, including elective 100% bonus depreciation for assets placed in service after January 19, 2025, with many others generally not effective until 2026 through 2027. We are currently assessing its impact on our consolidated financial statements, which will be incorporated during the period of enactment. The components of income taxes (benefit) are as follows: 88 Table of Contents Fiscal Year Ended June 30, 2025 2024 2023 Current tax expense (benefit): Federal $ 715 $ 2,358 $ 39,462 State ( 17 ) 424 9,071 Foreign 774 345 1,331 Total current 1,472 3,127 49,864 Deferred tax expense (benefit): Federal 3,641 ( 3,872 ) ( 14,230 ) State 18 ( 577 ) ( 2,019 ) Foreign ( 108 ) ( 20 ) ( 34 ) Total deferred 3,551 ( 4,469 ) ( 16,283 ) Income tax expense (benefit) $ 5,023 $ ( 1,342 ) $ 33,581 The income tax expense (benefit) differs from the amount computed by applying the federal statutory income tax rate to income (loss) from continuing operations before income taxes. The sources and tax effects of the differences are as follows: Fiscal Year Ended June 30, 2025 2024 2023 Federal tax provision (benefit) at statutory rate 21.0 % ( 21.0 ) % 21.0 % State income taxes, net of federal benefit 2.4 ( 0.3 ) 3.5 Permanent differences attributable to partnership investment 0.3 1.5 ( 0.5 ) Certain federal tax code limitations 1.1 0.7 0.8 Restricted stock shortfall (windfall) 1.3 0.6 ( 0.3 ) R&D credits ( 2.5 ) ( 0.9 ) ( 0.2 ) Impairment charges - Maverick — 17.9 — Non-controlling interest ( 0.5 ) ( 0.2 ) ( 0.5 ) Other, net 1.7 ( 0.6 ) ( 0.1 ) Total income tax (benefit) continuing operations 24.8 % ( 2.3 ) % 23.7 % Per Regulation S-X 4-08(h)(2), certain line items above exceed rate reconciliation reporting thresholds in the current year. For presentation purposes, these items have been broken out of Other, net for prior year for comparison purposes. The Company’s effective tax rate includes a rate benefit attributable to the fact that the Company’s subsidiary operated as a limited liability company which was not subject to federal income tax. Accordingly, the portion of the Company’s subsidiary earnings attributable to the non-controlling interest are subject to tax when reported as a component of the non-controlling interests’ taxable income. 89 Table of Contents The components of the Company's net deferred income tax assets and liabilities at June 30, 2025 and 2024 are as follows: As of June 30, 2025 2024 Deferred tax assets: Partnership basis differences $ 36,947 $ 42,115 Accrued liabilities and reserves 1,753 1,222 State tax credits and NOLs 14,096 12,859 Foreign tax credits 580 580 Federal NOL and Credits 18,942 19,335 Other 774 754 Less valuation allowance ( 17,485 ) ( 17,355 ) Total deferred tax assets 55,607 59,510 Deferred tax liabilities: Fixed assets and intangibles 18,652 19,054 Other 28 20 Total deferred tax liabilities 18,680 19,074 Total net deferred tax assets $ 36,927 $ 40,436 On an annual basis, the Company performs a comprehensive analysis of all forms of positive and negative evidence to determine whether realizability of deferred tax assets is more likely than not. During each interim period, the Company updates its annual analysis for significant changes in the positive and negative evidence. At June 30, 2025 and 2024, the Company concluded that $ 17,485 and $ 17,355 , respectively, of valuation allowance against deferred tax assets was necessary. The Company continues to record the valuation allowance against the deferred tax asset generated by the state impact of the 743(b) amortization and on state net operating losses generated by current and future amortization deductions (with respect to the Section 754 election) that are reported in the Tennessee corporate tax return without offsetting income, which is taxable at the LLC. These net operating losses have a 15 year carryover and will expire, if unused, between 2030 and 2040. This also includes a valuation allowance in the amount of $ 580 related to foreign tax credit carryforward that is not expected to be utilized in the future. Unrecognized tax benefits are discussed in the Company's accounting policy for income taxes (Refer to Note 1 on Income Taxes for more information). The Company has filed federal and state income tax returns that remain open to examination for fiscal years 2022 through 2024, while its subsidiaries, the LLC and Malibu Boats Pty Ltd., remain open to examination for fiscal years 2021 through 2024. A reconciliation of changes in the amount of unrecognized tax benefits for the fiscal years ended June 30, 2025, 2024 and 2023 is as follows: Fiscal Year Ended June 30, 2025 2024 2023 Balance as of July 1 $ 1,796 $ 1,718 $ 1,472 Additions based on tax positions taken during the current period 126 129 363 Reductions due to statute settlements ( 171 ) ( 130 ) ( 156 ) Additions for tax positions of prior years 36 79 39 Balance as of June 30 $ 1,787 $ 1,796 $ 1,718 In fiscal year 2025, the Company reduced its uncertain tax positions by $ 171 as a result of statute settlements, and recorded $ 126 in connection with its current year state filing positions. As of June 30, 2025, it is reasonably possible that $ 301 of the total unrecognized tax benefits recorded will reverse within the next twelve months. Of the total unrecognized tax benefits recorded on the consolidated balance sheets, $ 1,528 would impact the effective tax rate once settled. As discussed in Note 1 to the Consolidated Financial Statements, the Company's policy is to accrue interest related to potential underpayment of income taxes within the provision for income taxes. At June 30, 2025, the Company had $ 564 of accrued interest related to unrecognized tax benefits. 90 Table of Contents The Company did not provide for U.S. federal, state income taxes or foreign withholding taxes in fiscal year 2025 on the outside basis difference of its non-U.S. subsidiary, as such foreign earnings are considered to be permanently reinvested. The estimated income and withholding tax liability associated with the remittance of these earnings is nominal. 14. Stockholders' Equity The Company is authorized to issue 150,000,000 shares of capital stock, consisting of 100,000,000 shares of Class A Common Stock, 25,000,000 shares of Class B Common Stock, and 25,000,000 shares of Preferred Stock, par value $ 0.01 per share. Exchange of LLC Units for Class A Common Stock and Issuance of Class B Common Stock During fiscal year 2023, two non-controlling LLC Unit holders exchanged LLC Units for the issuance of Class A Common Stock. In connection with the exchange, no shares of Class B Common Stock were automatically transferred to the Company and retired. In addition, during fiscal year 2023 one non-controlling LLC Unit holder transferred LLC Units to two new entities (the “New LLC Members”) for no consideration, and the Company issued a total of two shares of Class B Common Stock to the New LLC Members for nominal consideration. As of June 30, 2023, the Company had a total of 12 shares of its Class B Common Stock issued and outstanding. During fiscal year 2024, four non-controlling LLC Unit holders exchanged LLC Units for the issuance of Class A Common Stock. In connection with the exchange, no shares of Class B Common Stock were automatically transferred to the Company and retired. As of June 30, 2024, the Company had a total of 12 shares of its Class B Common Stock issued and outstanding. During fiscal year 2025, two non-controlling LLC Unit holders exchanged LLC Units for the issuance of Class A Common Stock. In connection with the exchange, no shares of Class B Common Stock were automatically transferred to the Company and retired. As of June 30, 2025, the Company had a total of 12 shares of its Class B Common Stock issued and outstanding. Stock Repurchase Program On November 3, 2022, the Board of Directors of the Company authorized a stock repurchase program for the repurchase of up to $ 100,000 of Class A Common Stock and the LLC Units for the period from November 8, 2022 to November 8, 2023 (the “Fiscal 2023 Repurchase Program”). During fiscal year 2024, under the Fiscal 2023 Repurchase Program, the Company repurchased 261,962 shares of Class A Common Stock for $ 12,526 in cash including related fees and expenses. The Fiscal 2023 Repurchase Program expired on November 8, 2023. On October 26, 2023, the Board of Directors of the Company authorized a stock repurchase program for the repurchase of up to $ 100,000 of Class A Common Stock and LLC Units for the period from November 8, 2023 to November 8, 2024 (the "Fiscal 2024 Repurchase Program"). Under the Fiscal 2024 Repurchase Program, the Company repurchased 437,996 and 519,466 shares of Class A Common Stock for fiscal 2024 and fiscal 2025, respectively, for $ 17,317 and $ 20,200 in cash including related fees and expenses for fiscal 2024 and fiscal 2025, respectively. The Fiscal 2024 Repurchase program expired on November 8, 2024. On October 23, 2024, the Board of Directors of the Company authorized a stock repurchase program for the repurchase of up to $ 50.0 million of Class A Common Stock and LLC Units for the period from November 8, 2024 to June 30, 2025 (the "Fiscal 2025 Repurchase Program"). During fiscal year 2025, under the Fiscal 2025 Repurchase Program, the Company repurchased 478,325 shares of Class A Common Stock for $ 15,756 in cash including related fees and expenses. The Fiscal 2025 Repurchase program expired on June 30, 2025. On June 24, 2025, the Board of Directors authorized a stock repurchase program to allow for the repurchase of up to $ 50.0 million of our Class A Common Stock and LLC Units (the "Fiscal 2026 Repurchase Program") for the period from July 1, 2025 to June 30, 2026. Class A Common Stock and Class B Common Stock Voting Rights Holders of Class A Common Stock and Class B Common Stock will have voting power over Malibu Boats, Inc., the sole managing member of the LLC, at a level that is consistent with their overall equity ownership of the Company's business. Pursuant to the Company's certificate of incorporation and bylaws, each share of Class A Common Stock entitles the holder to one vote with respect to each matter presented to the Company's stockholders on which the holders of Class A Common Stock are entitled to vote. Each holder of Class B Common Stock shall be entitled to the number of votes equal to the total number of LLC Units held by such holder multiplied by the exchange rate specified in the Exchange Agreement with respect to each 91 Table of Contents matter presented to the Company's stockholders on which the holders of Class B Common Stock are entitled to vote. Accordingly, the holders of LLC Units collectively have a number of votes that is equal to the aggregate number of LLC Units that they hold. Subject to any rights that may be applicable to any then outstanding preferred stock, the Company's Class A and Class B Common Stock vote as a single class on all matters presented to the Company's stockholders for their vote or approval, except as otherwise provided in the Company's certificate of incorporation or bylaws or required by applicable law. Holders of the Company's Class A and Class B Common Stock do not have cumulative voting rights. Except in respect of matters relating to the election and removal of directors on the Company's board of directors and as otherwise provided in the Company's certificate of incorporation, the Company's bylaws, or as required by law, all matters to be voted on by the Company's stockholders must be approved by a majority of the shares present in person or by proxy at the meeting and entitled to vote on the subject matter. Dividends Subject to preferences that may apply to any shares of preferred stock outstanding at the time, the holders of the Company's Class A Common Stock will be entitled to share equally, identically and ratably in any dividends that the board of directors may determine to issue from time to time. Holders of the Company's Class B Common Stock do not have any right to receive dividends. Liquidation Rights In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company's affairs, holders of the Company's Class A Common Stock would be entitled to share ratably in the Company's assets that are legally available for distribution to stockholders after payment of its debts and other liabilities. If the Company has any preferred stock outstanding at such time, holders of the preferred stock may be entitled to distribution and/or liquidation preferences. In either such case, the Company must pay the applicable distribution to the holders of its preferred stock before it may pay distributions to the holders of its Class A Common Stock. Holders of the Company Class B Common Stock do not have any right to receive a distribution upon a voluntary or involuntary liquidation, dissolution or winding up of the Company's affairs. Other Rights Holders of the Company's Class A Common Stock will have no preemptive, conversion or other rights to subscribe for additional shares. The rights, preferences and privileges of the holders of the Company's Class A Common Stock will be subject to, and may be adversely affected by, the rights of the holders of shares of any series of the Company's preferred stock that the Company may designate and issue in the future. Preferred Stock Though the Company currently has no plans to issue any shares of preferred stock, its board of directors has the authority, without further action by the Company's stockholders, to designate and issue up to 25,000,000 shares of preferred stock in one or more series. The Company's board of directors may also designate the rights, preferences and privileges of the holders of each such series of preferred stock, any or all of which may be greater than or senior to those granted to the holders of common stock. Though the actual effect of any such issuance on the rights of the holders of common stock will not be known until the Company's board of directors determines the specific rights of the holders of preferred stock, the potential effects of such an issuance include: • diluting the voting power of the holders of common stock; • reducing the likelihood that holders of common stock will receive dividend payments; • reducing the likelihood that holders of common stock will receive payments in the event of the Company's liquidation, dissolution, or winding up; and • delaying, deterring or preventing a change-in-control or other corporate takeover. LLC Units In connection with the recapitalization the Company completed in connection with the Company's IPO, the LLC Agreement was amended and restated to, among other things; modify its capital structure by replacing the different classes of interests previously held by the LLC unit holders to a single new class of units called “LLC Units.” As a result of the Company's IPO and the recapitalization the Company completed in connection with the Company's IPO, the Company holds LLC Units in the LLC and is the sole managing member of the LLC. Holders of LLC Units do not have voting rights under the LLC Agreement. 92 Table of Contents Further, the LLC and the pre-IPO owners entered into the Exchange Agreement under which (subject to the terms of the Exchange Agreement) they have the right to exchange their LLC Units for shares of the Company's Class A Common Stock on a one -for-one basis, subject to customary conversion rate adjustments for stock splits, stock dividends and reclassifications, or at the Company's option, except in the event of a change in control, for a cash payment equal to the market value of the Class A Common Stock. As of June 30, 2025, the Company held 19,225,848 LLC Units, representing a 98.6 % economic interest in the LLC, while non-controlling LLC Unit holders held 276,419 LLC Units, representing a 1.4 % interest in the LLC. Refer to Note 3 for additional information on non-controlling interest. As discussed in Note 3, net profits and net losses of the LLC will generally be allocated to the LLC’s members (including the Company) pro rata in accordance with the percentages of their respective limited liability company interests. The LLC Agreement provides for cash distributions to the holders of LLC Units if the Company determines that the taxable income of the LLC will give rise to taxable income for its members. In accordance with the LLC Agreement, the Company intends to cause the LLC to make cash distributions to holders of LLC Units for purposes of funding their tax obligations in respect of the income of the LLC that is allocated to them. 15. Stock-Based Compensation Equity Awards Issued Under the Malibu Boats, Inc. Incentive Plans The Company adopted a Long Term Incentive Plan (the "2014 Incentive Plan") which became effective on January 1, 2014, and reserves for issuance up to 1,700,000 shares of Malibu Boats, Inc. Class A Common Stock for the Company’s employees, consultants, members of its board of directors and other independent contractors at the discretion of the compensation committee. Incentive stock awards authorized under the 2014 Incentive Plan include unrestricted shares of Class A Common Stock, stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalent awards and performance awards. As of December 31, 2024, no further shares were to be issued from the 2014 Incentive Plan. The number of any shares subject to stock options, restricted stock and restricted stock unit awards granted under the 2014 Incentive Plan that were outstanding as of October 23, 2024 and that are expired, forfeited, terminated, cancelled or otherwise reacquired after such date without having become vested will transfer to the 2024 Plan (defined below). On April 14, 2023, Wayne Wilson notified the Company of his resignation from his position as Chief Financial Officer and Secretary of the Company and from all other positions held with the Company and each of its subsidiaries. Mr. Wilson’s resignation as Chief Financial Officer and Secretary was effective April 19, 2023, and Mr. Wilson served in an advisory role through May 12, 2023. In connection with Mr. Wilson’s resignation, he forfeited 57,866 shares of the Company’s Class A Common Stock underlying unvested restricted stock awards and performance awards previously granted to Mr. Wilson. On February 7, 2025, Mr. Ritchie Anderson retired from his position as President of the Company and from all other positions held with the Company and each of its subsidiaries. In connection with Mr. Anderson’s retirement, Mr. Anderson forfeited 187,431 shares of the Company’s Class A Common Stock underlying unvested restricted stock awards, restricted stock units and performance awards previously granted to Mr. Anderson. On November 3, 2021, under the 2014 Incentive Plan, the Company granted approximately 32,000 restricted service-based stock units and 23,000 restricted service-based stock awards to key employees under the 2014 Incentive Plan. The grant date fair value of these awards was $ 4,149 based on a stock price of $ 74.25 per share on the date of grant. Approximately 58 % of the awards vest ratably over three years and approximately 42 % of the awards vest ratably over four years . Stock-based compensation expense attributable to the service-based units and awards is amortized on a straight-line basis over the requisite service period. On November 3, 2021, under the 2014 Incentive Plan, the Company granted to key employees a target amount of approximately 18,000 restricted stock awards with a performance condition. The number of shares that would have ultimately been issued, if any, was to be based on the attainment of a specified amount of earnings during the fiscal year ending June 30, 2024. All of the shares were forfeited as either the shares failed to vest due to resignation of the Company's former Chief Financial Officer, or the performance condition was not met. The original grant date fair value of the awards was estimated to be $ 1,305 , based on a stock price of $ 74.25 . Compensation costs associated with the performance awards are recognized over the requisite service period based on probability of achievement in accordance with ASC Topic 718, Compensation—Stock Compensation . On November 3, 2021, under the 2014 Incentive Plan, the Company granted to key employees a target amount of approximately 18,000 stock awards with a market condition. The number of shares that would have ultimately been issued, if any, was to be based on a total shareholder return ("TSR") computation that involves comparing the movement in the Company's stock price to movement in a market index from the grant date through November 3, 2024. The maximum number of shares that could be issued if the elevated TSR target was met, approximately 29,000 , adjusted to reflect the forfeiture of 93 Table of Contents shares in connection with the resignation of the Company’s former Chief Financial Officer. The remaining shares failed to vest as the market condition was not met. The original grant date fair value of the awards was estimated to be $ 1,688 , which was estimated using a Monte Carlo simulation. The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award grant and calculates the fair market value for the stock award. Compensation costs are recognized over the requisite service period in accordance with ASC Topic 718, Compensation—Stock Compensation . On May 6, 2022, under the 2014 Incentive Plan, the Company granted approximately 27,000 restricted service-based stock units to key employees under the 2014 Incentive Plan. The grant date fair value of these awards was $ 1,376 based on a stock price of $ 51.89 per share on the date of grant. The grant vested ratably over three years on a bi-annual basis. Stock-based compensation expense attributable to the service-based units and awards was amortized on a straight-line basis over the requisite service period. On November 3, 2022, under the 2014 Incentive Plan, the Company granted approximately 61,000 restricted service based stock units and 35,000 restricted service based stock awards to key employees under the 2014 Incentive Plan. The grant date fair value of these awards was $ 5,028 based on a stock price of $ 52.25 per share on the date of grant. Approximately 64 % of the awards vest ratably over three years and approximately 36 % of the awards vest ratably over four years . Stock-based compensation expense attributable to the service based units and awards is amortized on a straight-line basis over the requisite service period. On November 3, 2022, under the 2014 Incentive Plan, the Company granted to key employees a target amount of approximately 26,000 restricted stock awards with a performance condition. The number of shares that will ultimately be issued, if any, is based on the attainment of a specified amount of earnings during the fiscal year ending June 30, 2025. The maximum number of shares that can be issued if an elevated earnings target is met, adjusted to reflect the forfeiture of shares in connection with the resignations of the Company’s former Chief Financial Officer and President is approximately 25,000 . These shares failed to vest due to fiscal year 2025 financial performance. The original grant date fair value of the awards was estimated to be $ 1,380 , based on a stock price of $ 52.25 . Compensation costs associated with the performance awards are recognized over the requisite service period based on probability of achievement in accordance with ASC Topic 718, Compensation—Stock Compensation . On November 3, 2022, under the 2014 Incentive Plan, the Company granted to key employees a target amount of approximately 26,000 stock awards with a market condition. The number of shares that will ultimately be issued, if any, is based on a total shareholder return ("TSR") computation that involves comparing the movement in the Company's stock price to movement in a market index from the grant date through November 3, 2025. The maximum number of shares that can be issued if an elevated TSR target is met, adjusted to reflect the forfeiture of shares in connection with the resignations of the Company’s former Chief Financial Officer and President, is approximately 33,000 . The original grant date fair value of the awards was estimated to be $ 1,808 , which was estimated using a Monte Carlo simulation. The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award grant and calculates the fair market value for the stock award. Compensation costs are recognized over the requisite service period in accordance with ASC Topic 718, Compensation—Stock Compensation . On November 6, 2023, under the 2014 Incentive Plan, Malibu Boats, Inc. granted approximately 79,000 restricted service-based stock units and 35,000 restricted service-based stock awards to employees. The grant date fair value of these awards was $ 5,116 based on a stock price of $ 44.87 per share on the date of grant. Approximately 70 % of the awards vest ratably over three years and approximately 30 % of the awards vest ratably over four years . Stock-based compensation expense attributable to the service-based units and awards is amortized on a straight-line basis over the requisite service period. On November 6, 2023, under the 2014 Incentive Plan, Malibu Boats, Inc. granted to employees a target amount of approximately 26,000 restricted stock awards with a performance condition. The number of shares that will ultimately be issued, if any, is based on the attainment of a specified amount of earnings during the fiscal year ending June 30, 2026. The maximum number of shares that can be issued if an elevated earnings target is met, adjusted to reflect the forfeiture of shares in connection with the resignation of the Company's former President, is approximately 26,000 . The grant date fair value of the awards were estimated to be $ 1,167 , based on a stock price of $ 44.87 . These shares are not expected to vest based on the expectation that the related performance criteria will not be met. Compensation costs associated with the performance awards are recognized over the requisite service period based on probability of achievement in accordance with ASC Topic 718, Compensation—Stock Compensation. On November 6, 2023, under the 2014 Incentive Plan, Malibu Boats, Inc. granted to employees a target amount of approximately 26,000 stock awards with a market condition. The number of shares that will ultimately be issued, if any, is based on a total shareholder return ("TSR") computation that involves comparing the movement in Malibu Boats, Inc.'s stock 94 Table of Contents price to movement in a market index from the grant date through November 6, 2026. The maximum number of shares that can be issued if an elevated TSR target is met, adjusted to reflect the forfeiture of shares in connection with the resignation of the Company's former President, is approximately 35,000 . The grant date fair value of the awards was estimated to be $ 1,284 , which is estimated using a Monte Carlo simulation. The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award grant and calculates the fair market value for the stock award. Compensation costs are recognized over the requisite service period in accordance with ASC Topic 718, Compensation—Stock Compensation . On November 27, 2023, under the 2014 Incentive Plan, Malibu Boats, Inc. granted two awards to its newly-appointed Chief Financial Officer. The two service-based stock awards include approximately 7,000 units that will vest over two years and approximately 6,000 units that will vest over four years . The combined grant date fair value of these awards was $ 600 based on a stock price of $ 44.85 per share on the date of grant. On February 20, 2024, following the announcement of the upcoming departure of Malibu’s Chief Executive Officer, Malibu Boats, Inc. granted a one-time award of 92,699 restricted stock units to its President and 5,330 shares of restricted stock to a non-employee director who was appointed Executive Chair. The award to the President, which was to vest over four years and had a fair value of $ 4,000 , failed to vest upon his retirement. The award to the Executive Chair vested immediately and has a fair value of $ 230 . The fair value of both awards was based on a stock price of $ 43.15 on the date of grant. On August 5, 2024, under the 2014 Incentive Plan, Malibu Boats, Inc. granted two awards to its newly-appointed Chief Executive Officer. The two service-based stock awards include 44,064 units that will vest in equal installments over three years and 14,363 units that will vest in one year . The combined grant date fair value of these awards was $ 2,047 based on a stock price of $ 35.04 per share on the date of grant. On October 23, 2024, at the Company’s annual meeting of stockholders (the “2024 Annual Meeting”) the Company’s stockholders approved the Malibu Boats, Inc. 2024 Performance Incentive Plan (the “2024 Plan”), to replace the 2014 Incentive Plan effective as of the date of stockholder approval. The 2024 Plan provides for an aggregate limit of up to (i) 1,020,000 shares of common stock plus (ii) the number of shares subject to stock options granted under the 2014 Incentive Plan and outstanding as of the date of the 2024 Annual Meeting, which expire, or for any reason are cancelled or terminated, after the date of the 2024 Annual Meeting without being exercised, plus (iii) the number of any shares subject to restricted stock or restricted stock unit awards under the 2014 Incentive Plan that are outstanding and unvested as of the date of the 2024 Annual Meeting which are forfeited, terminated, cancelled, or otherwise reacquired after the date of the 2024 Annual Meeting without having become vested. The Company’s directors, officers and employees, as well as any of the officers or employees of the Company’s subsidiaries, certain consultants and advisors are currently eligible to receive equity awards under the 2024 Plan. As of June 30, 2025, without consideration of the shares ultimately to be added upon the completion of the 2014 Incentive Plan, 864,430 shares remain available for future issuance under the 2024 Plan. On November 4, 2024, under the 2024 Plan, Malibu Boats, Inc. granted approximately 71,000 restricted service-based stock units and 22,000 restricted service-based stock awards to employees. The grant date fair value of these awards was $ 3,943 based on a stock price of $ 42.33 per share on the date of grant. Approximately 76 % of the awards vest ratably over three years and approximately 24 % of the awards vest ratably over four years . Stock-based compensation expense attributable to the service-based units and awards is amortized on a straight-line basis over the requisite service period. On November 4, 2024, under the 2024 Plan, Malibu Boats, Inc. granted to employees a target amount of approximately 16,000 restricted stock awards with a performance condition. The number of shares that will ultimately be issued, if any, is based on the attainment of a specified amount of earnings during the fiscal year ending June 30, 2027. The maximum number of shares that can be issued if an elevated earnings target is met, adjusted to reflect the forfeiture of shares in connection with the resignation of the Company's former President, is approximately 14,000 . The grant date fair value of the awards was estimated to be $ 697 , based on a stock price of $ 42.33 . Compensation costs associated with the performance awards are recognized over the requisite service period based on probability of achievement in accordance with ASC Topic 718, Compensation—Stock Compensation. On November 4, 2024, under the 2024 Plan, Malibu Boats, Inc. granted to employees a target amount of approximately 16,000 stock awards with a market condition. The number of shares that will ultimately be issued, if any, is based on a total shareholder return ("TSR") computation that involves comparing the movement in Malibu Boats, Inc.'s stock price to movement in a market index from the grant date through November 6, 2027. The maximum number of shares that can be issued if an elevated TSR target is met, adjusted to reflect the forfeiture of shares in connection with the resignation of the Company's former President, is approximately 19,000 . The grant date fair value of the awards was estimated to be $ 868 which is estimated using a Monte Carlo simulation. The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award grant and calculates the fair market value for the stock 95 Table of Contents award. Compensation costs are recognized over the requisite service period in accordance with ASC Topic 718, Compensation—Stock Compensation. The following table presents the number, grant date stock price per share, and weighted-average exercise price per share of the Company’s employee option awards: Fiscal Year Ended June 30, 2025 2024 2023 Shares Weighted Average Exercise Price/Share Shares Weighted Average Exercise Price/Share Shares Weighted Average Exercise Price/Share Total outstanding Options at beginning of year 17,973 $ 37.55 17,973 $ 37.55 49,223 $ 40.46 Options granted — — — — — — Options exercised ( 5,989 ) 37.55 — — ( 31,250 ) 42.13 Options expired ( 11,984 ) 37.55 — — — — Outstanding options at end of year — $ — 17,973 $ 37.55 17,973 $ 37.55 Exercisable at end of year — $ — 17,973 $ 37.55 17,973 $ 37.55 The weighted average remaining contractual life of options outstanding and options outstanding and exercisable as of June 30, 2025 was zero years , respectively. The total intrinsic value of options exercised during the years ended June 30, 2025, 2024 and 2023 was $ 33 , $ 0 and $ 557 , respectively. The Company's non-employee directors receive an annual retainer for their services as directors consisting of both a cash retainer and equity awards in the form of Class A Common Stock or restricted stock units. Directors may elect that their cash annual retainer be converted into either fully vested shares of Class A Common Stock or restricted stock units paid on a deferral basis. Equity awards issued to directors are fully vested at the date of grant. Directors receiving restricted stock units as compensation for services have no rights as a stockholder of the Company, no dividend rights (except with respect to dividend equivalent rights), and no voting rights until Class A Common Stock is actually issued to them upon separation from service or change in control as defined in the Incentive Plan. If dividends are paid by the Company to its stockholders, directors would be entitled to receive an equal number of restricted stock units based on their proportional interest. For the fiscal year ended June 30, 2025, the Company issued 12,503 shares of Class A Common Stock and 16,322 restricted stock units with a weighted-average grant date fair value of $ 37.66 to its non-employee directors for their services as directors pursuant to the Incentive Plan or the 2024 Plan. For the fiscal year ended June 30, 2024, the Company issued 12,130 shares of Class A Common Stock, 13,429 restricted stock units and 5,330 shares of restricted stock with a weighted-average grant date fair value of $ 45.80 to its non-employee directors for their services as directors pursuant to the Incentive Plan. For the fiscal year ended June 30, 2023, the Company issued 2,105 shares of Class A Common Stock and 20,643 restricted stock units with a weighted-average grant date fair value of $ 52.45 to its non-employee directors for their services as directors pursuant to the Incentive Plan. 96 Table of Contents The following table presents the number and weighted-average grant date fair value of the Company’s director and employee restricted stock units and restricted stock awards: Fiscal Year Ended June 30, 2025 2024 2023 Number of Restricted Stock Units and Restricted Stock Awards Outstanding Weighted Average Grant Date Fair Value Number of Restricted Stock Units and Restricted Stock Awards Outstanding Weighted Average Grant Date Fair Value Number of Restricted Stock Units and Restricted Stock Awards Outstanding Weighted Average Grant Date Fair Value Total Non-vested Restricted Stock Units and Restricted Stock Awards at beginning of year 519,106 $ 50.08 324,824 $ 57.98 369,649 $ 55.75 Granted 249,699 39.86 351,000 44.06 214,172 52.30 Vested ( 115,619 ) 48.94 ( 125,362 ) 52.93 ( 180,898 ) 46.49 Forfeited ( 252,827 ) 50.53 ( 31,356 ) 53.12 ( 78,099 ) 58.45 Total Non-vested Restricted Stock Units and Restricted Stock Awards at end of year 400,359 $ 43.76 519,106 $ 50.08 324,824 $ 57.98 As of June 30, 2025, the total unrecognized compensation cost related to nonvested, share-based compensation was $ 9,175 , which the Company expects to recognize over a weighted-average period of two years . Stock compensation expense attributable to all of the Company's equity awards was $ 5,916 , $ 4,935 and $ 5,894 for fiscal years 2025, 2024 and 2023, respectively, is included in general and administrative expense in the Company's consolidated statements of operations and comprehensive income (loss). The cash flow effects resulting from all equity awards were reflected as noncash operating activities. 16. Net Earnings (Loss) Per Share Basic net income (loss) per share of Class A Common Stock is computed by dividing net income (loss) attributable to the Company's earnings by the weighted average number of shares of Class A Common Stock outstanding during the period. The weighted average number of shares of Class A Common Stock outstanding used in computing basic net income (loss) per share includes fully vested restricted stock units awarded to directors that are entitled to participate in distributions to common shareholders through receipt of additional units of equivalent value to the dividends paid to Class A Common Stock holders. Diluted net income (loss) per share of Class A Common Stock is computed similarly to basic net income (loss) per share except the weighted average shares outstanding are increased to include additional shares from the assumed exercise of any common stock equivalents using the treasury method, if dilutive. The Company’s LLC Units and non-qualified stock options are considered common stock equivalents for this purpose. The number of additional shares of Class A Common Stock related to these common stock equivalents and stock options are calculated using the treasury stock method. Stock awards with a performance condition that are based on the attainment of a specified amount of earnings are only included in the computation of diluted earnings per share to the extent that the performance condition would be achieved based on the current amount of earnings, and only if the effect would be dilutive. Stock awards with a market condition that are based on the performance of the Company's stock price in relation to a market index over a specified time period are only included in the computation of diluted earnings per share to the extent that 97 Table of Contents the shares would be issued based on the current market price of the Company's stock in relation to the market index, and only if the effect would be dilutive. Basic and diluted net income (loss) per share of Class A Common Stock has been computed as follows (in thousands, except share and per share amounts): Fiscal Year Ended June 30, 2025 2024 2023 Basic: Net income (loss) attributable to Malibu Boats, Inc. $ 14,879 $ ( 55,912 ) $ 104,513 Shares used in computing basic net income (loss) per share: Weighted-average Class A Common Stock 19,376,967 20,167,169 20,245,980 Weighted-average participating restricted stock units convertible into Class A Common Stock 287,370 272,280 255,864 Basic weighted-average shares outstanding 19,664,337 20,439,449 20,501,844 Basic net income (loss) per share $ 0.76 $ ( 2.74 ) $ 5.10 Diluted: Net income (loss) attributable to Malibu Boats, Inc. $ 14,879 $ ( 55,912 ) $ 104,513 Shares used in computing diluted net income (loss) per share: Basic weighted-average shares outstanding 19,664,337 20,439,449 20,501,844 Restricted stock units granted to employees 24,102 — 66,954 Stock options granted to employees 352 — 12,707 Market performance awards granted to employees 5,886 — 59,668 Diluted weighted-average shares outstanding 1 19,694,677 20,439,449 20,641,173 Diluted net income (loss) per share $ 0.76 $ ( 2.74 ) $ 5.06 1 The Company excluded 494,980 , 612,277 , and 516,205 potentially dilutive shares from the calculation of diluted net income (loss) per share for the fiscal year ended June 30, 2025, 2024, and 2023, respectively, as these units would have been antidilutive. The shares of Class B Common Stock do not share in the earnings or losses of Malibu Boats, Inc. and are therefore not included in the calculation. Accordingly, basic and diluted net income (loss) per share of Class B Common Stock has not been presented. 17. Commitments and Contingencies Repurchase Commitments In connection with its dealers’ wholesale floor-plan financing of boats, the Company has entered into repurchase agreements with various lending institutions. The reserve methodology used to record an estimated expense and loss reserve in each accounting period is based upon an analysis of likely repurchases based on current field inventory and likelihood of repurchase. Subsequent to the inception of the repurchase commitment, the Company evaluates the likelihood of repurchase and adjusts the estimated loss reserve accordingly. When a potential loss reserve is recorded it is presented in accrued liabilities in the accompanying consolidated balance sheets. If the Company were obligated to repurchase a significant number of units under any repurchase agreement, its business, operating results and financial condition could be adversely affected. The total amount financed under the floor plan financing programs with repurchase obligations was $ 364,085 and $ 367,950 as of June 30, 2025 and 2024, respectively. Repurchases and subsequent sales are recorded as a revenue transaction. The net difference between the repurchase price and the resale price is recorded against the loss reserve and presented in cost of sales in the accompanying consolidated statements of operations and comprehensive (loss) income. For fiscal year 2025, the Company repurchased 22 units that were subject to repurchase agreements, including 19 units totaling $ 2.5 million that were subject to the Company's repurchase agreement with M&T Bank ("Repurchase Agreement"), the lender under the floor plan financing for Tommy's Boats. Such repurchase was reflected in the Company's June 30, 2024 consolidated financial statements and these boats were subsequently 98 Table of Contents resold during the three months ended September 30, 2024 above cost. With respect to boats held by Tommy's Boats and not subject to the Repurchase Agreement, Mark E. Andrews, Chapter 11 Trustee (the “Trustee”) for Tommy’s Fort Worth, LLC and its affiliate debtors (the “Debtors”) in the jointly administered Chapter 11 Cases No. 24-90000 retained Gordon Brothers to sell the remaining inventory as part of liquidation sales. For fiscal year 2024 and 2023, the Company repurchased 17 and 0 units, respectively, under its repurchase agreements. The Company did not carry a reserve for repurchases as of June 30, 2025 and 2024, respectively. The Company has collateralized receivables financing arrangements with a third-party floor plan financing provider for European dealers. Under terms of these arrangements, the Company transfers the right to collect a trade receivable to the financing provider in exchange for cash but agrees to repurchase the receivable if the dealer defaults. Since the transfer of the receivable to the financing provider does not meet the conditions for a sale under ASC Topic 860, Transfers and Servicing , the Company continues to report the transferred trade receivable in other current assets with an offsetting balance recorded as a secured obligation in accrued expenses in the Company's consolidated balance sheets. As of June 30, 2025 and 2024 , the Company had no financing receivables recorded in other current assets and accrued expenses related to these arrangements. Contingencies Product Liability The Company is engaged in a business that exposes it to claims for product liability and warranty claims in the event the Company’s products actually or allegedly fail to perform as expected or the use of the Company’s products results, or is alleged to result, in property damage, personal injury or death. Although the Company maintains product and general liability insurance of the types and in the amounts that the Company believes are customary for the industry, the Company is not fully insured against all such potential claims. The Company may have the ability to refer claims to its suppliers and their insurers to pay the costs associated with any claims arising from the suppliers’ products. The Company’s insurance covers such claims that are not adequately covered by a supplier’s insurance and provides for excess secondary coverage above the limits provided by the Company’s suppliers. The Company may experience legal claims in excess of its insurance coverage or claims that are not covered by insurance, either of which could adversely affect its business, financial condition and results of operations. Adverse determination of material product liability and warranty claims made against the Company could have a material adverse effect on its financial condition and harm its reputation. In addition, if any of the Company's products are, or are alleged to be, defective, the Company may be required to participate in a recall of that product if the defect or alleged defect relates to safety. These and other claims that the Company faces could be costly to the Company and require substantial management attention. Refer to Note 9 for discussion of warranty claims. The Company insures against product liability claims and, except as disclosed below, believes there are no material product liability claims as of June 30, 2025 that will have a material adverse impact on the Company's results of operations, financial condition or cash flows. Litigation Certain conditions may exist which could result in a loss, but which will only be resolved when future events occur. The Company, in consultation with its legal counsel, assesses such contingent liabilities, and such assessments inherently involve an exercise of judgment. If the assessment of a contingency indicates that it is probable that a loss has been incurred, the Company accrues for such contingent loss when it can be reasonably estimated. If the assessment indicates that a potentially material loss contingency is not probable but reasonably estimable, or is probable but cannot be estimated, the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. If the assessment of a contingency deemed to be both probable and reasonably estimable involves a range of possible losses, the amount within the range that appears at the time to be a better estimate than any other amount within the range would be accrued. When no amount within the range is a better estimate than any other amount, the minimum amount in the range is accrued even though the minimum amount in the range is not necessarily the amount of loss that will be ultimately determined. Estimates of potential legal fees and other directly related costs associated with contingencies are not accrued but rather are expensed as incurred. Except as disclosed below, management does not believe there are any pending claims (asserted or unasserted) at June 30, 2025 or June 30, 2024 that will have a material adverse impact on the Company’s financial condition, results of operations or cash flows. Legal Proceedings Insurance Litigation MBI and its indirect subsidiary Boats LLC were defendants in the product liability case Batchelder et al. v. Malibu Boats, LLC, f/k/a Malibu Boats, Inc.; Malibu Boats West, Inc., et. al., Superior Court of Rabun County, Georgia, Civil Action Case 99 Table of Contents No. 2016-CV-0114-C (the “Batchelder I Matter”), brought by, among others, Stephan Paul Batchelder and Margaret Mary Batchelder as Administrators of the Estate of Ryan Paul Batchelder, deceased (“Batchelder I Plaintiffs”). Boats LLC was also a defendant in a related product liability case, Stephan Paul Batchelder and Margaret Mary Batchelder, as Natural Guardians of Josh Patrick Batchelder, a minor; Darin Batchelder, individually, and as Natural Guardian of Zach Batchelder, a minor; and Kayla Batchelder (the “Batchelder II Plaintiffs” and, together with the Batchelder I Plaintiffs, the “Batchelder Plaintiffs”) v. Malibu Boats, LLC v. Dennis Michael Ficarra; Superior Court of Rabun County, Civil Action File No. 2022-CV-0034 (the “Batchelder II Matter” and, together with the Batchelder I Matter, the “Batchelder Matters”). On June 30, 2023, MBI and Boats LLC entered into a Confidential General Release and Settlement Agreement (the “Settlement Agreement”) with the Batchelder Plaintiffs in settlement of the Batchelder Matters and all matters related to the Batchelder Matters. Pursuant to the Settlement Agreement, among other things, Malibu Boats, Inc., or Boats LLC, as the case may be, paid (or caused to be paid) to the Batchelder Plaintiffs and their agents a total of $ 100,000 . MBI and its subsidiaries, including Boats LLC, maintain liability insurance applicable to the Batchelder Matters described above with coverage up to $ 26,000 . As of June 30, 2025, the Company had received approximately $ 21,000 in insurance coverage proceeds, subject in certain cases to reservations of rights by the insurance carriers. The Company contends that the insurance carriers are responsible for the entirety of the $ 100,000 settlement amount and related expenses, and therefore, the insurers’ payments to date are well below what they should have tendered to Boats LLC. Accordingly, on July 3, 2023, Boats LLC filed a complaint against Federal Insurance Company (a Chubb subsidiary) and Starr Indemnity & Liability Company alleging that the insurers unreasonably failed to comply with their obligations by refusing, negligently, and in bad faith, to settle covered claims within their available policy limits prior to trial. On April 8, 2024, the court dismissed Starr, noting that only Chubb had the contractual right and duty to settle the Batchelder matters prior to trial. The Court subsequently granted the Company's motion for partial summary judgement, which precludes Chubb from apportioning liability to Starr. Chubb filed a notice of appeal on September 26, 2024, with respect to the dismissal of Starr and the order granting partial summary judgment against Chubb. The Company intends to vigorously pursue its claims against the insurance carriers to recover the full $ 100,000 settlement amount and expenses (less any monies already tendered without reservation by the carriers). However, the Company cannot predict the outcome of such litigation. Tommy's Boats and Matthew Borisch On April 10, 2024, fifteen dealerships operated under common control of Tommy’s Boats (“Tommy’s Boats”) filed a complaint against MBI and its indirect subsidiary Boats LLC in the United States District Court for the Eastern District of Tennessee (Case 3:24-cv-00166). The complaint alleges that MBI and Boats LLC breached obligations under dealership agreements with Tommy’s Boats, quantum meruit, unjust enrichment, promissory estoppel and intentional and negligent misrepresentations relating to the parties’ commercial relationship. Tommy’s Boats sought monetary damages. Boats LLC has taken possession of 19 new model year 2024 boats according to a repurchase agreement with M&T Bank, the floor plan financing lender to Tommy’s Boats. These boats were subsequently resold during the three months ended September 30, 2024. On July 3, 2024, Mark E. Andrews, Chapter 11 Trustee (the “Trustee”) for Tommy’s Boats voluntarily dismissed without prejudice the claims filed by Tommy's Boats. On August 16, 2024, Matthew Borisch, the principal owner of Tommy’s Boats, filed a complaint against Malibu Boats Inc, Malibu Boats LLC, and Jack Springer in the United States District Court for the Eastern District of Tennessee (Case 3:24-cv-00339), alleging similar allegations to those of the dismissed complaint against MBI and Boats LLC filed by Tommy’s Boats. Mr. Borisch amended his complaint on October 29, 2024. On October 7, 2024, MBI and Boats LLC entered into a Settlement Agreement (the “Settlement Agreement”) with the Trustee. Pursuant to the Settlement Agreement, upon the satisfaction of certain conditions, MBI and Boats LLC agreed to pay the Tommy’s Boats’ estate $ 3.5 million in cash and MBI and Boats LLC and the Trustee agreed to mutual releases of all outstanding claims between them. The Settlement Agreement was approved by the Bankruptcy Court on November 19, 2024. On May 22, 2025, the Bankruptcy Court determined that most of Mr. Borisch’s claims are property of the Tommy’s Boats bankruptcy estates and required Mr. Borisch to withdraw or dismiss such claims against MBI and Boats, LLC while finding that Mr. Borisch could assert certain potential claims against Malibu Boats, Inc. and Malibu Boats, LLC in his individual capacity. In consideration of the Bankruptcy Court’s ruling, the Trustee agreed to cooperate with us in defense of Mr. Borisch’s claims. As a result of the Bankruptcy Court's determination and the Trustee's agreement to cooperate, on July 21, 2025, Malibu made the $ 3.5 million settlement payment to the Tommy’s Boats estate to consummate the Settlement Agreement. On July 11, 2025, Mr. Borisch sought leave to amend his complaint and has asserted that the remaining claims he has brought belong to him in his individual capacity. The Company intends to vigorously defend itself against any claims alleged by Mr. Borisch. The Company is unable to provide any reasonable evaluation of the likelihood that a loss will be incurred or any reasonable estimate of the range of possible loss. 100 Table of Contents Securities Class Action Lawsuit On April 29, 2024, a stockholder, individually and on behalf of all others similarly situated, filed a complaint against MBI and Jack Springer, Bruce Beckman, David Black, and Wayne Wilson as current and former officers of the Company in the United States District Court for the Southern District of New York (Case 1:24-cv-03254). On August 15, 2024, the Court appointed the Retiree Benefit Trust of the City of Baltimore as the Lead Plaintiff in the action. The amended complaint alleges violations of the Securities Exchange Act of 1934, as amended, in connection with allegedly false and misleading statements made by MBI related to the Company's business, operations, and prospects during the period from November 4, 2022 through May 1, 2024 ("Class Period"). The amended complaint alleges, among other things, that the defendants violated Sections 10(b) and 20(a) of the Exchange Act and SEC Rule 10b-5 by not disclosing alleged material adverse facts related to the Company’s inventory, demand and relationship with one of its former dealers, Tommy’s Boats, and accordingly, that certain statements made during the Class Period about the Company's business, operations, and prospects were materially misleading. On July 29, 2025, MBI and the individual defendants entered into a Stipulation and Agreement of Settlement with the Lead Plaintiff. The settlement is subject to Court approval and, without admitting fault or liability, contemplates a settlement amount of $ 7.8 million for the benefit of a settlement class comprised of all purchasers of MBI Securities during the Class Period. MBI anticipates that the settlement amount will be fully paid with proceeds from MBI's directors and officers insurance carriers. On November 25, 2024, a stockholder, derivatively on behalf of MBI, filed a complaint against Jack Springer, Ritchie Anderson, Bruce Beckman, David Black, and Wayne Wilson as current and former officers of the Company, as well as current and former members of the MBI Board of Directors in the United States District Court for the Southern District of New York (Case 1:24-cv-09018). On December 20, 2024, a second stockholder, derivatively on behalf of MBI, filed a complaint against the same defendants in the United States District Court for the Southern District of New York (Case 1:24-cv-09870). On January 7, 2025, these derivative actions were consolidated and stayed pending certain developments in the securities class action. On April 8, 2025, a third stockholder, derivatively on behalf of MBI, filed a complaint against the same defendants in the United States District Court for the Eastern District of Tennessee (Case 3:25-cv-00142). On May 16, 2025, a fourth stockholder, derivatively on behalf of MBI, filed a complaint against the same defendants, except for Ritchie Anderson, in the United States District Court for the Eastern District of Tennessee (Case 3:25-cv-00223). The derivative actions allege violations of the Securities Exchange Act of 1934, as amended, as well as breach of fiduciary duties and unjust enrichment against the individual defendants in connection with the issues raised in the securities class action. The Company intends to vigorously defend itself against claims alleged in these derivative actions. The Company is unable to provide any reasonable evaluation of the likelihood that a loss will be incurred or any reasonable estimate of the range of possible loss. Customer Class Action Lawsuit On May 31, 2024, a customer filed a class action complaint against MBI and Boats LLC in the United States District Court for the District of Delaware. (Case 1:24-cv-00648). The complaint, which purports to be filed on behalf of a nationwide class of customers, alleges violation of common law, the Magnuson-Moss Warranty Act, breach of express warranty, breach of implied warranty, and violation of California’s Consumer Legal Remedies Act based on guidance issued to customers of certain older model boats related to riding in the bow area of those boats. The Company intends to vigorously defend itself. The Company is unable to provide any reasonable evaluation of the likelihood that a loss will be incurred or any reasonable estimate of the range of possible loss. 18. Related Party Transactions As of June 30, 2025, there were two non-employee members of the Company's board of directors that are also original shareholders of the Company and receive an annual retainer as compensation for services rendered. For the fiscal years ended June 30, 2025, 2024, and 2023, $ 408 , $ 484 and $ 409 , respectively, was paid to these directors in both cash and equity for their services. 19. Segment Reporting We determine our operating segments based on how the Chief Operating Decision Maker (CODM), our Chief Executive Officer, manages the business, allocates resources, makes operating decisions and evaluates operating performance. The Company has three reportable segments: Malibu, Saltwater Fishing and Cobalt. The Malibu segment participates in the manufacturing, distribution, marketing and sale of Malibu and Axis performance sports boats throughout the world. The Saltwater Fishing segment participates in the manufacturing, distribution, marketing and sale throughout the world of Pursuit boats and the Maverick Boat Group brand boats (Maverick, Cobia, Pathfinder and Hewes). The Cobalt segment participates in the manufacturing, distribution, marketing and sale of Cobalt boats throughout the world. Separate financial information for the three reportable segments is evaluated by the CODM to allocate resources and assess performance. Segment asset and capital expenditure information is not presented because it is not evaluated by the CODM at the segment level. 101 Table of Contents Intersegment transactions are not considered significant and consist primarily of engines and other materials that are eliminated within the Malibu segment. Certain costs are incurred at the corporate level and are partially allocated to the Company’s segments. These costs generally include shared service functions such as information technology, digital marketing, finance and accounting and supply chain. Each allocation is measured based on each segment's proportionate budgeted net sales for the current fiscal year. The remaining unallocated corporate costs, as well as costs related to stock-based compensation, interest expense, professional fees and other corporate costs, are reported within Corporate expenses and other as a reconciling item to our consolidated results. Our segment operating performance measure is Segment Adjusted EBITDA. The CODM uses Segment Adjusted EBITDA to evaluate segment operating performance, generate future operating plans, and make strategic decisions. Segment Adjusted EBITDA excludes interest expense, income taxes, depreciation, amortization, goodwill and other intangible asset impairment expense and non-cash, non-recurring or non-operating expenses (as shown in the table below). These charges are excluded from the evaluation of segment performance because it facilitates reportable segment performance comparisons on a period-to-period basis as these costs may vary independent of business performance There is no country outside of the United States from which the Company (a) derived net sales equal to 10% of total net sales, or (b) attributed assets equal to 10% of total assets. Net sales are attributed to countries based on the location of the dealer. For information about how our reportable segments derive revenue, as well as revenue grouped by offerings and geographical region, refer to Note 2 – Revenue Recognition. The following table presents financial information for the Company’s reportable segments for the fiscal years ended June 30, 2025, 2024, and 2023. Fiscal Year Ended June 30, 2025 Malibu Saltwater Fishing Cobalt Total Net sales $ 312,698 $ 279,635 $ 215,228 $ 807,561 Cost of sales (excluding depreciation) 226,956 226,544 180,141 633,641 Sales and marketing expense 9,693 8,834 4,544 23,071 General and administrative expense (excluding depreciation) 1 15,476 17,585 12,687 45,748 Other segment items 2 ( 38 ) — — ( 38 ) Segment Adjusted EBITDA 60,611 26,672 17,856 105,139 Reconciliation of segment adjusted EBITDA to income before income taxes: Corporate expenses and other 3 46,283 Depreciation 31,794 Amortization 6,799 Income before income taxes $ 20,263 Fiscal Year Ended June 30, 2024 Malibu Saltwater Fishing Cobalt Total Net sales $ 279,131 $ 327,542 $ 222,362 $ 829,035 Cost of sales (excluding depreciation) 211,443 264,707 181,659 657,809 Sales and marketing expense 9,094 8,835 4,855 22,784 General and administrative expense (excluding depreciation) 1 16,056 18,477 13,177 47,710 Other segment items 2 ( 41 ) ( 41 ) Segment Adjusted EBITDA 42,579 35,523 22,671 100,773 Reconciliation of segment adjusted EBITDA to income before income taxes: Corporate expenses and other 3 28,445 102 Table of Contents Depreciation 26,178 Amortization 6,811 Goodwill and other intangible asset impairment 88,389 Abandonment of construction in process 8,735 Loss before income taxes $ ( 57,785 ) Fiscal Year Ended June 30, 2023 Malibu Saltwater Fishing Cobalt Total Net sales $ 636,247 $ 449,156 $ 302,962 $ 1,388,365 Cost of sales (excluding depreciation) 422,706 357,208 237,145 1,017,059 Sales and marketing expense 10,728 8,074 5,207 24,009 General and administrative expense (excluding depreciation) 1 16,078 16,732 11,131 43,941 Other segment items 2 ( 138 ) ( 138 ) Segment Adjusted EBITDA 186,873 67,142 49,479 303,494 Reconciliation of segment adjusted EBITDA to income before income taxes: Corporate expenses and other 3 133,283 Depreciation 21,912 Amortization 6,808 Income before income taxes $ 141,491 1 The primary difference between this significant segment expense and “G&A (excluding depreciation)” within the Company’s Consolidated Statements of Operations relates to stock-based compensation, professional fees and litigation settlements which all fall under the "corporate expenses and other" category discussed below. 2 Other segment items include other income. 3 Corporate expenses and other represents costs incurred at the corporate level that are not allocated to the operating segments, specifically relating to certain executive compensation including stock-based compensation, corporate professional fees, litigation settlements, interest expense, adjustments to tax receivable agreement, other corporate costs, and unallocated shared service function expenses. “Corporate expenses and other” is included in the table above to reconcile the total of Segment Adjusted EBITDA to the Company’s consolidated income (loss) before income taxes. 103 Table of Contents Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None.