OneWater Marine Inc.

Good morning. My name is Matt, and I'll be your conference operator today. At this time, I would like to welcome everyone to the One Water Marine Second Quarter 2026 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After today's prepared remarks, we will host a question and answer session. If you'd like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Jack Ezell, Chief Financial Officer and Chief Operating Officer. Jack, please go ahead.

Good morning and welcome to One Water Marine's fiscal second quarter 2026 earnings conference call. I am joined on the call today by Austin Singleton, Executive Chairman, and Anthony Asquith, Chief Executive Officer. Before we begin, I'd like to remind you that certain statements made by management in this morning's conference call regarding One Water Marine and its operations may be considered forward-looking statements under securities law and involve a number of risks and uncertainties. As a result, the company cautions you that there are a number of factors, many of which are beyond the company's control, which could cause actual results and events to differ materially from those described in the forward-looking statements. Factors that might affect future results are discussed in the company's earnings release, which can be found in the investor relations section on the company's website and in its filings with the SEC. 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 note that all comparisons of our second quarter 2026 results are made against second quarter 2025, unless otherwise noted. And with that, I'd like to turn the call over to Austin Singleton, who began with a few opening remarks.

Austin? Thank you, Jack. Good morning, everyone, and thank you for joining us today to discuss our second quarter 2026 results, which reflect the challenging retail environment, a continued improvement in boat margins, portfolio optimization, and a notable reduction in leverage. Revenue for the quarter declined 9%, and same-store sales were down 8%. primarily due to event timing and portfolio changes. This year, the Palm Beach International Boat Show took place at the end of March, which shifted a meaningful amount of new boat sales into the June quarter. This timing shift accounted for approximately half of the decline in new boat sales during the quarter. Also during the quarter, we completed the sale of ocean bio kiln as part of our broader portfolio optimization strategy, focused on core assets and long-term value creation. While we updated our guidance to reflect the impact of the sale in February, the absence of those revenues will create challenging year-over-year comparisons for the remainder of the year. Importantly, we continue to operate from a position of strength. Our inventory continues to be in the best condition it has been in years with a healthy mix and age profile supported by disciplined production from our OEM partners. We remain focused on enhancing profitability and reducing balance sheet leverage. We are driving margin expansion with a more streamlined portfolio of brands and assets. This, combined with our strong inventory positioning, contributed to a 110 basis point increase in gross margin. We also made meaningful progress in reducing debt supported by proceeds from the Ocean Biochem sale and strong operating cash flow, and we remain on track to achieve our leveraged target later this year. Beyond positioning for a market recovery, the strategic actions we've taken are helping us build a more efficient, resilient business model. As we move into the core boating season, we are encouraged by customer engagement and remain focused on execution, selling boats, managing costs, and positioning our business for long-term success. With that, I will turn it over to Anthony.