NextBoat (AMEX:NXB) released second-quarter financial results and hosted an earnings call on Thursday. Read the complete transcript below.

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Summary

NextBoat achieved record revenue of $59 million in Q2 2026, an 88.41% increase year-over-year, driven by transaction volume up 138%.

The company is scaling its AI platform, aiming to reach $1 billion in revenue, and focusing on turning scale into profitability.

Strategic partnerships with MarineMax and Newcoast were formed, enhancing revenue streams through finance and insurance.

Acquisitions of Apex Marine and Belhart Marine expanded NextBoat's physical footprint and service capabilities.

Management emphasized a focus on improving margins and leveraging technology and data to enhance transaction efficiency.

Full Transcript

OPERATOR

Both on a GAAP and a non-GAAP basis. The reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures is available in today's earnings release. The company disclaims any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law. Please also note that all comparisons of our second quarter 2026 results are made against the second quarter 2025 results unless otherwise noted.

I'd also like to remind everyone that today's call is being recorded and an archived version of the call will be available on the company's website sometime after the call. With that, I'd like to turn the call over to COO Blake Phillips.

Blake Phillips, COO

Thank you, operator, and good afternoon, everyone. We appreciate you joining us today. I want to start out with our team, our brokers in the docks and out in the water, our buyers behind their desks working on our next acquisitions, and our closings, service, and support teams making it all happen, because what they delivered this quarter is the story of this call. Transaction volume up approximately 138% year over year. Our transaction closing team tripled to keep pace while we continue to model our AI to work alongside them.

The organization grew about 42% year over year to build the machine that makes all of this possible. That's not incremental progress, that's a company hitting its stride. I'm proud of what this team has built and grateful to everyone who helped to get us here. I'll walk you through four pillars, where we've been and where we're going. 1. In the past year we've built the infrastructure to become the leading platform to buy, sell, service, and maintain pre-owned boats in the U.S., and we took that company public. 2. We are now scaling that company and that platform, and this quarter is proof that it scales. 3. Our NextBoat AI platform is the multiplier, the engine that takes us from over 100 million in revenue in 2025 toward what we believe can be a billion-dollar revenue company. 4. We are focused on turning that scale into profitability, making every part of our business accretive on its own and driving down corporate-level costs, including the cost of being a public company, so that profitability shows up at the bottom line.

Here's the backdrop for all of it. NextBoat has been profitable every single year since our founding, more than 13 years running. We didn't take this company public because we needed to prove we could make money. We took it public because we saw a fragmented multi-billion-dollar market ready to be rebuilt around a better platform. And we needed the capital infrastructure to go build it. That's exactly what the last year has been. And the opportunity is enormous.

Roughly three out of every four boat transactions in the U.S. involve a pre-owned vessel. That's the majority of this entire market. And it still runs largely on fragmented listings, opaque pricing, and paperwork. That hasn't changed in a decade. We are building the platform that fixes that. The speed, the transparency, and liquidity this market has never had. But there's something underneath the platform that we think is even more powerful. We sit at the intersection of two massive data sets.

On one side we know exactly what buyers and brokers are looking for, the demand. On the other, we have a constant inflow of boats coming to us for valuation, the supply. That puts us in a unique position to connect those dots off-market, matching real buyer and broker demand against real available inventory before either side has to search for another. We're bringing that capability to market as its own offering: Match, powered by NextBoat. It's the connective tissue of this entire platform, and we believe it's one of the most valuable and most exciting pieces of what we've built.

We're not just another dealership competing for the same customers. We are the market maker for pre-owned boats, the company on both sides of the trade, with the technology, the capital, and the infrastructure to let thousands of people buy and sell from anywhere. This is a scalable, decentralized marketplace built for how boats will actually be bought and sold going forward, not a bigger version of the old model. In this quarter the model proved itself.

Record transaction closings, record quarterly sales, transaction volume up roughly 120% year over year. And it worked across both sides of our business, brokerage and company-owned inventory alike. Extending the growth trajectory we set last quarter, we also landed two partnerships to validate the platform at a category level. Marine Max, one of the largest names in the marine industry, is now our preferred wholesale partner for pre-owned boats and yachts.

New coast is now our preferred finance and insurance partner. These are the kind of relationships that come looking for you once the platform starts working at scale. We also kept building our physical footprint this quarter, the places where our brokers, service teams, and customers actually meet the water. In South Florida, we grew through the acquisition of Apex Marine Group, giving us a flagship operating location in the most active boating market in the world.

In the Mid-Atlantic, we acquired a property in Maryland capable of supporting nearly 200 boats, from reconditioning to sales. And in North Carolina, we expanded our operations to complement multiple parts of the business, from company-owned inventory to brokerage, to service and support. Taken together, this is a footprint that's growing deliberately, anchored by real operating hubs across three of the most important boating regions in the country.

So today, for the first time, every piece is on the field at once: the platform, the brand, the partnerships, and the footprint. Which brings us to what's next. We told you on our first call that this would be a building year. It was. And now the building is done, the pieces are in place. So our focus shifts from proving the model to sharpening it, from adding scale to converting that scale into margin. Every part of this business needs to stand on its own and be net accretive to our bottom line.

And we're going to hold ourselves to that while we keep investing in what makes this company stronger for the long run. With that, I'll turn over to Brian. Brian.

Chad Corbett, CFO

Thank you, Brian, and good afternoon, everyone. Starting with revenue for the second quarter ended June 30, 2026. We generated record revenue of $59.1 million, representing an increase of 88.4% compared to $31.3 million in the same period of 2025. The increase was primarily attributable to the contribution of the Apex Marine and Belhart businesses acquired during the quarter, an increase in our floor plan limit that supported higher inventory utilization throughout the period, and the continued expansion of our broker network at Off The Hook and our premier brokerage yacht division, Autograph Yacht Group.

All these factors contributed to an increase in the number of pre-owned boats sold and brokerage deals closed during the quarter. New boat sales increased by $7.1 million, or 189.3%, to $10.9 million for the three months ended June 30, 2026, compared to $3.8 million in the same period 2025. The increase is attributable to the new boat lines that were acquired through the Apex Marine and Belhart acquisitions. Pre-owned boat sales increased by $18.5 million, or 69.5%, to $45.0 million for the three months ended June 30, 2026, compared to $26.6 million in the same period 2025.

For the three months ended June 30, 2026, we sold approximately 230 pre-owned units compared to approximately 112 pre-owned units for the same period 2025. Average price per inventory pre-owned boat sale transaction was approximately $381,566 for the three months ended June 30, 2026, compared to approximately $400,302 in the same period 2025. We sell a wide range of brands and sizes of pre-owned boats under different types of sales arrangements, which causes periodic and seasonal fluctuations in the average sales price.

Revenue from arranging financing products, including financing, insurance, and extended warranty contracts to customers through various third-party financial institutions and insurance companies, increased by $400,000, or 66.7%, to $1.0 million for the three months ended June 30, 2026, compared to $600,000 in the same period of 2025. The increase was attributable to the high volume of units delivered, a greater proportion of finance-dependent buyers in the customer mix, and increased emphasis on financing solutions for customers purchasing pre-owned inventory.

Revenue from service, parts, and other sales increased by $1.8 million, or 465.6%, to $2.2 million for the three months ended June 30, 2026, compared to $400,000 in the same period in 2025. The increase is attributable to the acquisitions of Apex Marine and Belhart Marine. These acquisitions are expected to expand internal service capabilities for inventory and support growth in our retail service offerings. Gross profit increased by $4.8 million, or 100.1%, to $9.5 million for the three months ended June 30, 2026, compared to $4.8 million in the same period 2025.

The increase was attributable to a high number of boats transacted across our platform. Additionally, growth in our higher-margin businesses, service and financial products, contributed to the increase in gross margin. Gross profit for pre-owned boat sales increased by $3.0 million, or 81.1%, to $6.7 million for the three months ended June 30, 2026, compared to $3.7 million for the same period 2025. Pre-owned boat gross profit as a percentage of pre-owned boat revenue was 15.0% for the three months ended June 30, 2026, compared to 13.9% in the same period 2025.

We sell a diverse mix of pre-owned boats across various price points, brands, and sales channels, including trade-ins, consignment, wholesale, and brokerage, which naturally contributes to fluctuations in gross profit margins due to varying transaction structures and sales dynamics. Moreover, the modest growth in gross profit as a percentage of pre-owned boat revenues can be attributed to our purchasing team's skillful buying decisions regarding our used boat inventory.

Selling, general and administrative expenses consist primarily of lease expense, insurance, utilities, and other customary operating expenses. SG&A increased $1.0 million, or 250%, to $1.4 million for the three months ended June 30, 2026, compared to $400,000 in the same period 2025. This increase was primarily attributable to the operating cost base of the Apex Marine and Belhart business acquired during the quarter, higher indirect marketing expenses, and higher insurance costs related to increased inventory levels under the floor plan financing arrangements, each in line with the company's planned business expansion for 2026.

Salary and wages expenses increased $3.6 million, or 127.8%, to $6.5 million for the three months ended June 30, 2026, compared to $2.8 million in the same period in 2025. Leading into and following our initial public offering, salaries and wages increased as we aligned our compensation with public company market benchmarks and enhanced retention packages to ensure that we attract, motivate, and retain talent required to deliver long-term shareholder value.

Further, the company issued stock-based compensation to employees after the initial public offering, which was $1.7 million for the three months ended June 30, 2026. These equity awards have vesting conditions including service-based and performance-based requirements and vest between one and five years. Advertising and marketing expenses increased $350,000, or 700%, to $400,000 for the three months ended June 30, 2026, compared to $50,000 in the same period 2025.

The increase is due to expanding market share and enhancing corporate brand awareness. The cost increases were consistent with our established marketing strategy to support our company's planned public offering and the associated expansion of our sales organization. The company's floor plan interest expense increased $300,000, or 60%, to $800,000 for the three months ended June 30, 2026, compared to $500,000 in the same period 2025. In 2026, the company incurred higher interest expense due to the increase in our floor plan credit limit and our utilization of the line of credit.

We are maintaining our full-year 2026 revenue guidance of $165 million to $170 million while we focus on our margin improvements and profitability in the second half of the year. With that, I will turn the call back to Brian for closing remarks before we open the line for questions. Brian, thank you.

Brian

As we expand our brokers, locations, partnerships, and capacity to buy and sell boats, we are very proud of the progress our team made across the business in the second quarter that has continued at a record pace into our third quarter that we are currently in. We delivered record revenue, record unit value, and expanded our broker network and locations that position us for the next phase of our growth. Our growth, financial performance, and new relationship with REMAX further proves out our model works.

We generally believe that the used boat market is overdue for modernization. We now have the infrastructure, technology, capital relationships, and recruiting systems to scale in a way this industry has not historically been able to. We believe we are building something highly scalable that can fundamentally change how used boats are bought and sold globally. On behalf of our entire leadership team, I want to thank our employees, partners, and investors for their continued support.

With that, operator, please open the lines for questions.

OPERATOR

Thank you. We will now begin the question-and-answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question, and if you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Mark Smith from Lake Street. Please go ahead.

Mark Smith, Analyst at Lake Street

Hi, guys. I want to ask first a little bit about MarineMax and the acquisition there. Just as you think about it and look at it, do you view this as, you know, is there any threat to the partnerships that you have? And then, you know, does this potentially create some opportunities that you guys can capitalize on?

Blake Phillips, COO

Yeah, I can take that. This is Blake Phillips, thank you very much. As to—I'll first start by talking a little bit about the partnership. We're super excited about it. REMAX is obviously one of the biggest and most respected players in the industry, so having them choose NextBoat and our respective technology and team is great validation to what we're building. And with the Blackstone and Safe Harbor news this week, we certainly think that's exciting as well.

You're seeing significant institutional capital coming into the marine industry, which I think, you know, ultimately speaks to the opportunity ahead. So on both fronts, it's still early, but we're excited about the relationship, excited about the rollout, really looking forward to seeing where it can go.

Mark Smith, Analyst at Lake Street

Perfect. And then I wanted to ask just about your own acquisitions. You closed on two this quarter. Kind of curious where you guys are on integration of Apex and Belhart, you know, where you're at in that, and then kind of how active the M&A pipeline is for the remainder of the year.

Brian

This is Brian. I'll answer that second part, if that's okay. Mike, can you hear me? Hello? Yeah. So, yeah, I was intimately involved with the acquisition of Apex. The company was on track to lose over a million dollars. They were trying to expand too quickly, and the gentleman running the company was getting a lot older, and we were able to go in there and instead of losing in March 15, I think we showed a positive roughly $60,000 in the black so far. So completely turned around the business already, and it's heading in the right direction.

We still have some more work to do, kind of implementing things with them and our accounting systems, things of that nature. But other than that, it's up and running and it's humming along. So we're very happy with where we are with that acquisition so far.

Blake Phillips, COO

I can piggyback on that a little bit more just to add some additional color. The Apex acquisition is highly complementary to our mission of being the world's largest buyer and retailer of used boats. So when that is the mission of the company, you've ultimately got to have land to utilize and allow for that to be a mission where the rubber meets the road, per se. So Apex is our company in the most living, breathing form where boats are acquired into, reconditioned, and retailed.

So, you know, for that matter, it's really a hub for us that really wraps in everything that our company represents. And there are other complementing elements to Apex, of course, with outside service. It is a bona fide shipyard. We've got new boat sales activity, but at its core it is highly complementary of what has brought us to this point, which is the largest buyer and reseller of pre-owned boats.

Mark Smith, Analyst at Lake Street

Perfect, thank you.

OPERATOR

Your next question comes from the line of Mike Albanese from Benchmark Company. Please go ahead.

Mike Albanese, Analyst at Benchmark Company

Yeah, hey guys, thanks for taking my question. Can you all hear me okay?

Brian

Yeah, I can hear you, Mike. This is Brian.

Mike Albanese, Analyst at Benchmark Company

Hey, Brian. All right, so just, you know, inventory up here—obviously you pulled on the floor plan a bit. I mean, I guess can you just help us understand kind of where your current inventory turns are and maybe where you see them going as the acquisitions are integrated here?

Blake Phillips, COO

That's a great question. You know, we're still in the four to five times a year range. Obviously we're growing very quick, so I expect it to stay in that range. But, you know, as volume increases, obviously those numbers may come down. And it's not a bad thing. It's, you know, that's why people use us. It's because our actions, even when we're buying boats from dealers and things of that nature. You know, the fact that we can close so quickly on a boat and take a trade from a dealer is really our value to them.

So I think I expect them to stay in that four to five times range for the foreseeable future. Well, hey, Mike.

Chad Corbett, CFO

This is Chad. I'll add on to that a little bit as well. You know, one of the things that we're going to be focusing on is our turns for our inventory. Actually, we were just talking prior to this call about it. So it's going to be a major focus of ours, and now, having the two refurbishment centers to help manage that inventory and that workload, we're going to be able to control it and ultimately get the quicker turns. Because a lot of times it's not necessarily finding the right buyer; a lot of times it's just getting the boat in condition, ready to sell, to get it on the market.

Mike Albanese, Analyst at Benchmark Company

All right, great. And then if I can just kind of, you know, I guess this kind of takes it a step further, but, you know, I guess I'm trying to get a sense of the level of working cap needs. You know, you put the infrastructure in place here, you built the platform. You know, it's a jumping off point where we can really start to grow this thing. But so just think about kind of run rate your business as it stands today or maybe as you integrate the most recent deals, working cap needs for this model, however you want to frame that hopefully.

Chad Corbett, CFO

Yeah, no, it makes sense. Yeah, for sure. You know, we obviously, as we utilize more of our floor plan, we need more capital to put money down on those boats. We are going to, you know, focus on the boats that are generating the most margin for us. So, you know, we will buy some of the larger boats, which typically bring in the lower margins. But I think, going, you know, focusing the second half of the year, we're going to put a higher emphasis on some of the boats.

In our account, our sweet spot, we usually say that's, you know, between $200,000 and, say, $600,000 boats. So obviously those need a little lower working capital for carrying costs, you know, whether it be repairs or interest expense. So I think, you know, in terms of the amount of working capital needed, I mean, we obviously, you know, the quicker we turn, the quicker we can just, you know, roll that money right back into the floor plan for the, you know, for equity payments.

So it's just a matter of keeping the, managing the size of the units and the turns, then making sure that we have enough working capital to support the floor plan.

Mike Albanese, Analyst at Benchmark Company

Got it. Okay, that's it for me. Thanks, guys.

OPERATOR

At this time, there are no further questions. This concludes today's call. Thank you for attending. You may now disconnect.

Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.