Earnings release
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Off The Hook Yachts Reports Third Quarter Financial And Operating Results December 15, 2025 Third Quarter Revenues of $24.0 millionRecord Nine Month Revenues of $82.6 million, up 19.3% YOYThird Quarter Number of Boats totaled 112 units, up 51% YOYIssues 2026 Full Year Revenue Guidance Wilmington, NC, Dec. 15, 2025 (GLOBE NEWSWIRE) — Off The Hook YS Inc. (NYSE: “OTH”, or “Off the Hook Yachts”), one of America’slargest buyer and seller of pre-owned boats, today announced financial results for the third quarter ended September 30, 2025. The Company willhost a live conference call today Monday, December 15, 2005, at 4:30 P.M. EST. “I’d like to acknowledge my team in the outstanding performance this quarter, even as we executed on our initial public offering on November 14,2025 where we raised $15 million. I’m also proud of our recent successful launch of Autograph Yacht Group, located in Jupiter, Florida, and our 45brokers, positioned throughout the United States. By leveraging its nationwide broker network, advanced CRM technology, and synergisticportfolio of entities, OTH delivers exceptional value to clients. As we continue to focus on the pre-owned boat market, we believe that we canquickly capitalize on boating trends whether pre-owned boat prices go up or down,” said Brian John, Chief Executive Officer of OTH. 2025 Third Quarter Highlights • Completed our IPO on November 14, 2025 • Revenue was $24.0 million, compared to $25.8 million in 2024 • Third quarter number of boats sold grew 51.1% to 112 • Second highest quarterly boat sales in the Company’s history, following a record 117 units in the seasonally strongsecond quarter • Net loss of $0.07 million with adjusted EBITDA of $0.5 million • Gross profit of $3.0 million compared to $2.9 million in 2024 • Opened our premier yacht broker division, Autograph Yacht Group in South Florida • Added ten new brokers to our growing team of brokers 2025 Nine Month Highlights • Record revenue of $82.6 million, an increase of 19.3% • Record number of boats sold, grew 24.4% to 310 • Net income of $0.8 million • Adjusted EBITDA was $2.6 million, compared to $3.1 million in 2024 • Gross profit of $8.4 million for the nine months ended September 30, 2025, compared to $6.9 million for the nine monthsended September 30, 2024., an increase of $1.5 million 2026 Full Year Guidance For 2026 the Company expects that annual revenue will be between $140 million and $145 million. Third Quarter Financial Discussion Third quarter revenues of $24.0 million decreased 7.2%, compared to third quarter revenues in 2024, a portion of the revenue decrease isattributed to several larger pre-owned boat sales closing in the first few days in Q4. We sold 51.1% more boats in the third quarter of 2025 selling112 in the third quarter of 2025 versus 74 boats in the same period of 2024. We believe sales can continue to grow at a higher rate going forwarddue to an increased broker pool and a larger amount of capital to grow our floor plan and increase the number of boats we can transact. Revenue from boat sales decreased by $1.8 million, or (7.18)%, to $23.4 million. Despite a slight decrease in boat revenues which was primarilyattributed to time of sale completion of a few large boats, we are still seeing strong demand and expect this to be reflected in our 4th-quarterrevenues. Revenue from arranging financing products, including financing, insurance and extended warranty contracts, to customers throughvarious third-party financial institutions and insurance companies, was $0.6 million as compared to $0.7 million in 2024. The Company plans toincrease the attachment rate of Azure with our boat sales and thereby growing the business internally.
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Gross profit was $3.0 million compared to $2.9 million in 2024. Our gross profit as a percentage of sales increased slightly. Our boat sales grossprofit increased $0.2 million as a result of our purchasing team’s skillful buying decisions for our pre-owned boat inventory. Finance related grossprofit decreased $0.1 million. Operating expenses were $2.7 million compared to $1.6 million in 2024. SG&A increased primarily because we added go-to-market capacity andpublic-company capabilities designed to support significantly higher revenue over the next several years. Floor plan interest expense was $0.4 million compared to $0.3 million for 2024. Adjusted EBITDA was $0.5 million in the third quarter of 2025,versus $1.4 million in the same period in 2024. GAAP diluted earnings per share for the third quarter in 2025 was ($0.003), compared to $0.048 in the same period in 2024. Nine Month Financial Discussion Revenue was $82.6 million as compared to $69.2 million in 2024, an increase of 19.3%. The revenue increase is primarily due to an increase innew and pre-owned boat sales. Revenue from boat sales increased 20.39%, to $80.7 million compared to $67.1 in 2024. The revenue increase isprimarily attributed to our increased utilization of our floor plan financing facility. Revenue from arranging financing products, including financing,insurance and extended warranty contracts, to customers through various third-party financial institutions and insurance companies was $1.9million as compared to $2.2 million for 2024. Gross profit was $8.4 million as compared to $6.9 million in 2024, an increase of 20.8%. This increase was primarily driven by our increase inoverall sales revenue, specifically our pre-owned boat segment. Our gross profit as a percentage of sales increased slightly. Boat sale gross profitwas $7.3 million as compared to $5.6 million in 2024, an increase of 29.3%. Finance related gross profit was $1.1 million as compared to $1.3million in 2024. Operating expenses were $6.1 million as compared to $4.3 million in 2024. This increase includes one-time expenses such as IPO costs, and allfees associated for launching Autograph Yacht Group. This growth is broadly in line with our plan, and we expect SG&A as a percentage ofrevenue to decline over time as we realize operating leverage. Floor plan interest expense was $1.4 million as compared to $0.7 million in 2024. Floor plan interest expense is increasing as we sell more boatsand hold more inventory in order to give brokers and customers a wider selection of used boats. Conference Call and Webcast The Company will host an earnings conference call on December 15, 2025, at 4:30 P.M. Eastern time. All interested parties can join the call. Toparticipate in the call, please dial (800) 715-9871 (domestic), or (646) 307-1963 (international). The conference passcode is 5863262. This call isbeing webcast and can be accessed using the conference passcode 5863262, on the Investor Relations section of the company’s websiteat https://investor.offthehookyachts.com/. The online replay will be available for a limited time beginning immediately following the call. About Off The Hook YS Inc. Founded in 2012, Off The Hook YS Inc. has become one of America’s largest buyers and sellers of pre-owned boats. Headquartered inWilmington, North Carolina, with operations throughout the East Coast and South Florida, the Company acquires more than $100 million in boatsand yachts annually. Off The Hook Yachts leverages AI-assisted valuation tools and a data-driven sales platform to bring speed and transparencyto yacht transactions, supported by a nationwide network of offices and marinas offering brokerage, wholesale, and performance yacht sales.Customers can buy boats from our many boat brokers including Autograph Yacht Group, our premier yacht brokerage offering expert service,exclusive listings, and a refined approach to buying and selling yachts. They can finance them with our Azure Funding Division, our recreationalloan broker and lender providing financing solutions for individuals, dealerships, and brokerages. Off the Hook Yacht Services provides high-quality maintenance, repair, and support services yacht servicing. Marine Asset Recovery provides asset recovery and repossession services. Inaddition to our company digital property, Boatsandbuyers.com and Webuyboats.com provide boat auction and lead generation services. Topurchase a boat, explore our inventory or visit the Autograph Yacht Group website. Cautionary Statement Regarding Forward-Looking Statements This press release contains “forward-looking statements” that are subject to substantial risks and uncertainties. All statements, other thanstatements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this pressrelease may be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “intend,” “seek,” “may,”“might,” “plan,” “potential,” “predict,” “project,” “target,” “aim,” “should,” “will” “would,” or the negative of these words or other similar expressions,although not all forward-looking statements contain these words. Forward-looking statements are based on Off The Hook YS Inc.’s currentexpectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-lookingstatements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties aredescribed more fully in the section titled “Risk Factors” in the final prospectus related to the public offering filed with the Securities and ExchangeCommission. Forward-looking statements contained in this announcement are made as of this date, and Off The Hook YS Inc. undertakes no dutyto update such information except as required under applicable law. Contacts: Off The Hook YS, Inc.:Chad CorbinChief Financial OfficerCcorbin@offthehookys.com
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Investor Contact:John Evans, Riverside Capital(415) 309-0230IR@offthehookys.com Appendix OFF THE HOOK YS, INC.Condensed Consolidated Balance Sheets($ in thousands, except share and per share data) September 30,2025 December 31,2024 (Unaudited) (Audited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 2,267,564 $ 2,927,126 Accounts receivable, net 244,400 104,317 Inventory 24,015,983 22,593,422 Prepaid expense 2,281,347 2,388,782 Private label receivable – 4,942 Other current assets 368,117 840,401 TOTAL CURRENT ASSETS 29,177,411 28,858,990 NON-CURRENT ASSETS Property, plant and equipment, net 498,156 461,709 Other receivable 43,366 42,192 Private label receivable – 185,550 Due from related party – 11,313 Right-of-use assets 1,868,839 1,505,986 Goodwill 570,000 570,000 Intangible assets, net 456,111 – TOTAL NON-CURRENT ASSETS 3,436,472 2,776,750 TOTAL ASSETS $ 32,613,883 $ 31,635,740 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable $ 627,237 $ 962,725 Accrued liabilities 519,204 507,284 Lease liabilities, current 491,945 382,731 Line of credit 2,842,682 2,833,400 Current portion of long-term debt 219,321 137,468 Due to related party 1,322,015 1,422,540
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Customer deposit 1,690,533 2,350,219 Floor plan notes payable 23,478,756 20,595,517 Other current liabilities 213,631 110,547 Contingent liabilities 350,000 – TOTAL CURRENT LIABILITIES 31,755,324 29,302,431 LONG-TERM LIABILITIES Long-term debt, noncurrent 67,924 229,295 Lease liabilities, noncurrent 1,401,170 1,136,624 TOTAL LONG-TERM LIABILITIES 1,469,094 1,365,919 TOTAL LIABILITIES 33,224,418 30,668,350 MEMBERS’ DEFICIT Common stock, with $0.001 par value, 100,000,000 number ofcommon stocks authorized, 20,000,000 shares of commonstocks issued and outstanding as of September 30, 2025, andDecember 31, 2024, respectively. * 20,000 20,000 Additional paid-in capital 2,774,944 2,774,944 Retained earnings (3,405,479) (1,827,554) TOTAL MEMBERS’ EQUITY (610,535) 967,390 TOTAL LIABILITIES AND MEMBERS’ EQUITY $ 32,613,883 $ 31,635,740 OFF THE HOOK YS, INC.Condensed Consolidated Statements of Income($ in thousands, except share and per share data) For the three months ended September 30,For the nine months ended September 30, 2025 2024 2025 2024 Revenues $ 24,005,345 $ 25,865,198 $ 82,592,188 $ 69,225,871 Cost of revenues 20,975,546 22,963,223 74,218,978 62,296,256 Gross profit 3,029,799 2,901,975 8,373,210 6,929,615 Operating expenses: Depreciation andamortization 87,162 68,760 210,372 206,787 Selling, general andadministrative 617,396 256,616 1,441,248 1,053,275 Advertising andmarketing 220,851 95,202 597,506 314,081 Professional services 68,892 119,793 170,372 288,375 Salaries and wages 1,513,401 941,514 3,113,964 2,148,143 Rent expenses 211,689 126,459 596,250 313,514
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Total operatingexpenses 2,719,391 1,608,344 6,129,712 4,324,175 Income from operations310,408 1,293,631 2,243,498 2,605,440 Other expenses: Interest expense, net(500,360) (404,281) (1,616,872) (1,205,638 Other income 123,286 71,118 150,323 272,672 Total expenses (377,074) (333,163) (1,466,549) (932,966 Net Income (loss)$ (66,666) $ 960,468 $ 776,949 $ 1,672,474 Basic and diluted netincome per membershipshares $ (0.003) $ 0.048 $ 0.039 $ 0.084 Basic and dilutedweighted averagemembership sharesoutstanding 20,000,000 20,000,000 20,000,000 20,000,000 *Par value of common stocks, additional paid-in capital and share data have been retrospectively restated to give effect to the reorganization thatis discussed in Note 1. OFF THE HOOK YS, INC.Condensed Consolidated Statements of Cash Flows($ in thousands, except share and per share data) For the nine months ended September 30, 2025 2024 Cash flows from operating activities: Net income $ 776,949 $ 1,672,474 Adjustments to reconcile net loss to net cash used in operatingactivities: Depreciation and amortization 210,372 206,787 Imputed interest – 10,688 Changes in operating assets and liabilities: Accounts receivable (140,083) (87,820) Private label receivable 190,492 990,516 Other receivable (1,174) (16,363) Inventory (1,422,561) (5,553,367) Prepaid expense 107,435 (217,016) Other current assets 472,284 (779,428) Due from related parties 11,313 (13,991) Right-of-use assets 357,930 167,587 Accounts payable (335,488) 151,937 Accrued liabilities 11,920 (92,090)
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Customer deposits (659,686) 105,202 Other current liabilities 103,084 505,008 Lease liabilities (347,023) (157,846) Net cash used in operating activities (664,236) (3,107,722) Cash flows from investing activities: Purchase of fixed assets (202,930) (47,220) Acquisition of intangible assets (150,000) – Net cash used in investing activities (352,930) (47,220) Cash flows from financing activities: Proceeds from line of credit 79,732 1,311,612 Payment to line of credit (70,450) (592,440) Member distribution (2,354,874) (835,111 ) Proceed from short-term loan payable – 108,855 Payment to short-term loan payable – (70,000) Proceed from floorplan notes payables 55,264,450 32,232,333 Payment to floor plan notes payable (52,381,211 ) (26,474,162) Proceed from long-term debt 59,428 311,748 Payment to long-term debt (138,946) (364,633) Proceeds from related party debts 12,020 1,336,455 Repayments on related party debts (112,545) (1,753,157) Net cash provided by financing activities 357,604 5,211,500 Net change in cash (659,562) 2,056,558 Cash and cash equivalents, beginning of period$ 2,927,126 1,654,631 Cash and cash equivalents, end of period$ 2,267,564 $ 3,711,189 SUPPLEMENTAL DISCLOSURE OF CASH FLOWINFORMATION: Cash paid for interest 1,617,156 1,194,950 NON-CASH INVESTING AND FINANCING ACTIVITIES Establishment of ROU assets and liabilities$ 720,783 $ 1,498,815 Stock consideration recorded as contingent liability for assetsacquisition $ 350,000 $ – Non-GAAP Financial Information
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To supplement OTH’s financial information presented in accordance with generally accepted accounting principles in the United States of America,or GAAP, OTH presents certain financial measures that are not prepared in accordance with GAAP including adjusted EBITDA. These non-GAAPfinancial measures, which are defined below, should not be considered in isolation from, or as a substitute for, financial information prepared inaccordance with GAAP. These non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are notnecessarily comparable to similarly titled measures presented by other companies. OTH is presenting these non-GAAP financial measures to assist investors in seeing OTH’s operating results through the eyes of management andbecause OTH’s believes that these measures provide a useful tool for investors to use in assessing OTH’s operating performance against priorperiod operating results and against business objectives. OTH uses the non-GAAP financial measures in evaluating its operating results and forfinancial and operational decision-making purposes. The accompanying tables provide more detail on the GAAP financial measures that are most directly comparable to the non-GAAP financialmeasures described above and the related reconciliations between these financial measures. Adjusted EBITDA We define and calculate adjusted EBITDA as GAAP net income (loss) before interest income or expense, income tax (benefit) expense,depreciation and amortization, and further adjusted for the items as described in the reconciliation below. We believe this information will be usefulfor investors to facilitate comparisons of our operating performance and better identify trends in our business. Adjusted EBITDA excludes certain expenses that are required to be presented in accordance with GAAP because management believes they arenon-core to our regular business. These include, but are not limited to the following: • non-cash expenses, such as depreciation and amortization and stock-based compensation, • interest expense and income tax expense or benefit; and The following tables present a reconciliation of adjusted EBITDA to our net (loss) income, which is the most directly comparable GAAP measurefor the periods presented. For the three months endedSeptember 30, For the nine months endedSeptember 30, 2025 2024 2025 2024 Net (loss) income$ (66,666) $ 960,468 $ 776,949 $ 1,672,474 Interest expense,net 500,360 404,281 1,616,872 1,205,638 Depreciation andamortization 87,162 68,760 210,372 206,787 Adjusted EBITDA$ 520,856 $ 1,433,509 $ 2,604,193 $ 3,084,899