Off The Hook Ys (NYSEAMERICAN:OTH) reported record first-quarter 2026 revenue and unit volume, while management outlined plans to scale its pre-owned boat sales platform through broker recruitment, artificial intelligence tools and expanded physical infrastructure.
The company generated first-quarter revenue of $29.8 million, up 9.6% from $27.2 million in the prior-year period, Chief Financial Officer Chad Corbin said on the earnings call. CEO Brian John said the company sold 127 boats during the quarter, up more than 46% from 87 boats in the first quarter of 2025.
“This growth is not driven by a single initiative,” John said. “It reflects progress across multiple parts of our platform, including stronger brokerage productivity, improved inventory availability, and continued momentum in our brokerage operations.”
Pre-owned boats drive revenue growth
Corbin said pre-owned boat sales increased $6.7 million, or 31.8%, to $27.8 million for the quarter, compared with $21.1 million a year earlier. The company sold approximately 124 pre-owned units during the period, compared with about 80 in the prior-year quarter. Average price per inventory pre-owned boat transaction was approximately $224,000, down from approximately $263,000 a year earlier, reflecting the company’s mix of brands, sizes and sales arrangements.
New boat sales declined $4.2 million, or 76.4%, to $1.3 million from $5.5 million a year earlier. Corbin attributed the decrease in part to reduced marketing efforts and a slowdown in the new boat market.
Gross profit rose to $3.2 million from $2.7 million in the year-ago quarter. Pre-owned boat gross profit increased to $2.6 million from $2 million, while pre-owned gross profit margin was 9.4%, compared with 9.6% a year earlier. Corbin said some inventory was sold at or near breakeven to accelerate turnover and reduce floor plan interest expense amid pricing pressure.
Revenue from finance, insurance and extended warranty products declined to $300,000 from $600,000. Corbin said the decrease reflected customer mix, including more high-end buyers using cash, as well as marine loan rates that remain above historical averages.
Broker network and AI platform central to strategy
Founder and President Jason Ruegg said the company has spent the past year building infrastructure intended to support a national platform for buying, selling, servicing and maintaining pre-owned boats. He said the market remains fragmented despite pre-owned vessels accounting for roughly three-quarters of U.S. boat transactions.
Management emphasized the company’s NextBoat AI platform as a key element of its growth strategy. John said the platform is already assisting with boat valuations, deal structuring, offer generation, CRM workflows and brokerage support. He said management’s goal is to enable the company to make thousands of offers per week without requiring senior leadership to touch every transaction.
John also highlighted the company’s broker recruitment efforts, saying Off The Hook added 30 brokers in the first quarter and has grown to nearly 100 brokers organically. The company has created a five-tier override incentive program designed to encourage brokers to recruit additional brokers, with the NextBoat AI system tracking recruiting, production, profitability and overrides.
In the question-and-answer session, Chief Operating Officer Blake Phillips said NextBoat AI is intended to support valuations, workflows, offer generation and brokerage expansion. Ruegg added that AI could help the company scale functions such as closings and recruiting without adding overhead at the same rate.
Apex Marine acquisition expands physical infrastructure
John said the company completed the purchase of Apex Marine in South Florida, describing the acquisition as part of a long-term storage and service strategy. He said Apex is expected to lower costs, improve margins, reduce turn times on boats prepared for resale and create operational leverage.
Phillips said Apex represents the physical complement to the company’s digital platform, adding service, storage, logistics and related efficiencies. In response to an analyst question, John said Apex includes a 9-acre Miami location operating at about 50% capacity, as well as locations in Lantana and Stuart, Florida. He said those facilities should handle most of the company’s South Florida inventory needs, while additional locations in North Carolina and Baltimore are intended to support East Coast operations.
Costs rise as company builds public-company platform
Corbin said selling, general and administrative expenses increased to $1.3 million from $400,000 a year earlier, driven mainly by additional rent from new leases, indirect marketing tied to expanded sales efforts and higher software expenses. Salaries and wages rose to $3.1 million from $900,000, reflecting compensation adjustments around the company’s initial public offering and $1.8 million in stock compensation expense.
Advertising and marketing expenses increased to $600,000 from $300,000, while floor plan interest expense rose to $500,000 from $200,000 due to higher utilization of the company’s expanded floor plan credit facility.
Revenue outlook raised
Corbin said the company is raising its full-year 2026 revenue guidance to a range of $165 million to $170 million, citing positive trends in the second quarter. John said April revenue was $21 million and that revenue in the first half of the second quarter had already exceeded the company’s revenue for the entire second quarter of 2025.
John said the company had used about $40 million of its expanded inventory floor plan facility, which now totals approximately $65 million, up from roughly $25 million before the IPO. He said management expects capital availability and inventory access to remain important drivers as the company seeks to scale both wholesale and brokerage operations.
About Off The Hook Ys (NYSEAMERICAN:OTH)
We are a premier yacht and boat dealership specializing in the buying, selling, and wholesaling of yachts and boats. Founded in 2012 by Jason Ruegg, OTHYS has grown into one of the largest marine wholesaler in the industry, recognized for its innovation, expertise, and expansive operations. Over the past decade, we believe OTHYS has become a nationally recognized leader in the marine industry, earning numerous accolades. The company has been named one of the 500 fastest-growing companies in the United States by Inc 500 and is consistently ranked as a Top 100 Dealer in the USA by Boating Industry, a magazine for boating professionals.
