Financial Analysis

4. BUSINESS COMBINATIONS On May 15, 2026, the Company completed the merger with Marine Products, pursuant to which each share of Marine Products common stock, par value $ 0.10 per share, was converted into the right to receive 0.232 shares of the Companys common stock, par value $ 0.01 per share and $ 2.43 in cash, representing total merger consideration of approximately $ 284.2 million. As a result of the Marine Products Transaction, the Company reevaluated its reportable segment structure and determined that the operations acquired from Marine Products constitute a separate reportable segment. Accordingly, beginning on May 15, 2026, the Company began reporting the acquired operations within its newly established Recreation and Sport Fishing segment. For the period from May 15, 2026 through June 30, 2026, Marine Products contributed net sales of $ 33.3 million and net loss of $ 6.6 million. The following table summarizes the fair value of the merger consideration transferred: Amount Shares of Marine Products common stock 34,863,738 Exchange ratio 0.232 Shares of MasterCraft common stock issued 8,088,171 MasterCraft closing share price $ 24.64 Stock consideration for shares issued $ 199,293 Partial consideration for shares of Assumed RSAs $ 118 Total stock consideration $ 199,411 Shares of Marine Products common stock 34,863,738 Cash Consideration per share $ 2.43 Cash consideration $ 84,725 Partial cash consideration for Assumed RSAs $ 50 Total cash consideration $ 84,775 To …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

13. COMMITMENTS AND CONTINGENCIES Repurchase Obligations Under certain conditions, the Company is obligated to repurchase new inventory repossessed from dealerships by financial institutions that provide credit to the Companys dealers. See Note 1 for more information regarding the terms and accounting policies related to this obligation. The Companys obligations under such floor plan agreements are subject to various calculations and caps based on amounts currently owed by dealers to these financial institutions and, based on such terms, totaled approximately $ 63.5 million and $ 41.0 million as of June 30, 2026 and June 30, 2025, respectively. We incurred no material impact from repurchase events during the years ended June 30, 2026, 2025, and 2024 . The Company recorded a repurchase liability of $ 1.5 million and $ 1.6 million as of June 30, 2026 and 2025, respectively. Purchase Commitments The Company is engaged in an exclusive contract with a single vendor to provide engines for its Performance and Wake segment. This contract makes this vendor the only supplier to the Companys Performance and Wake segment for in-board engines and expires June 30, 2030 . The Company is obligated to purchase a minimum number of engines for each model year under this contract. The Company could also be required to pay a penalty to this vendor in order to maintain exclusivity if annual purchases under the agreement fail to meet a certain volume threshold. We incurred no penalties related to p …

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10. LONG-TERM DEBT There were no amounts of long-term debt outstanding as of June 30, 2026 and 2025. Prior Credit Agreement In fiscal 2021, the Company entered into a credit agreement (the 2021 Credit Agreement) that provided the Company with a $ 160.0 million senior secured credit facility, consisting of a $ 60.0 million term loan and a $ 100.0 million revolving credit facility. In fiscal 2025, the Company entered into the Fourth Amendment to the 2021 Credit Agreement to obtain the necessary consents and waivers to the covenant restrictions related to the Aviara Transaction and the Aviara Facility Sale, as discussed in Note 3, and a waiver to the fixed charge ratio for certain periods. Following the amendment, all amounts under the term loan were repaid and the facility thereafter only provided the Company with a revolving credit facility. Amended and Restated Credit Agreement On February 5, 2026, the Company entered into a Fifth Amendment to its 2021 Credit Agreement (as amended, the Credit Agreement) with JPMorgan Chase Bank, N.A., as administrative agent, and the lenders party thereto, which provides the Company with a revolving credit facility up to $ 75.0 million (the Revolving Credit Facility). The Credit Agreement, among other things, expressly permitted the Marine Products Transaction and revises certain financial covenants to our 2021 Credit Agreement, including replacing the fixed charge ratio with an interest coverage ratio, and extends the revolving maturity to 2 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following tables present the Companys net sales by major product category for each reportable segment. Year Ended June 30, 2026 Performance and Wake Leisure Recreation and Sport Fishing Total Major Product Categories: Boats and trailers $ 256,884 $ 42,672 $ 32,848 $ 332,404 Parts 11,524 1,054 478 13,056 Other revenue 2,769 674 3,443 Total $ 271,177 $ 44,400 $ 33,326 $ 348,903 Year Ended June 30, 2025 Performance and Wake Leisure Total Major Product Categories: Boats and trailers $ 226,016 $ 41,020 $ 267,036 Parts 11,704 1,692 13,396 Other revenue 3,043 728 3,771 Total $ 240,763 $ 43,440 $ 284,203 Year Ended June 30, 2024 Performance and Wake Leisure Total Major Product Categories: Boats and trailers $ 245,963 $ 57,832 $ 303,795 Parts 13,567 1,242 14,809 Other revenue 3,206 541 3,747 Total $ 262,736 $ 59,615 $ 322,351 …

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12. SHARE-BASED COMPENSATION The Second Amended and Restated MasterCraft 2015 Incentive Award Plan (Amended 2015 Plan) provides for the grant of stock options, including incentive stock options, and nonqualified stock options (NSOs), restricted stock, dividend equivalents, stock payments, RSUs, RSAs, deferred stock, deferred stock units, performance awards, stock appreciation rights, PSUs, and cash awards. As of June 30, 2026 , there were 894,472 shares available for issuance under the Amended 2015 Plan. The following table presents the components of share-based compensation expense within continuing operations by award type for the years ended June 30, 2026, 2025, and 2024. 2026 2025 2024 Restricted stock $ 3,652 $ 2,915 $ 2,971 Compensation related to business combination 461 Performance stock units ( 369 ) Share-based compensation expense $ 4,113 $ 2,915 $ 2,602 The amount of compensation cost the Company recognizes over the requisite service period is based on the Companys best estimate of the achievement of the performance conditions and can fluctuate over time. The following table presents the income tax benefit (expense) related to share-based compensation expense within continuing operations recognized by award type for the years ended June 30, 2026, 2025, and 2024. 2026 2025 2024 Restricted stock $ 815 $ 682 $ 688 Compensation related to business combination 103 Performance stock units ( 85 ) Share-based compensation expense $ 918 $ 682 $ 603 Restricted Stock All RSU …

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8. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill and Other Intangible Asset Impairment See Note 1 for a discussion of the methods used to determine the fair value of goodwill and other intangible assets. In assessing the need for goodwill and intangible impairment, management utilizes a number of estimates, including operating results, business plans, economic projections, anticipated future cash flows, transactions and marketplace data. Accordingly, these fair value measurements fall in Level 3 of the fair value hierarchy. Goodwill As of June 30, 2026, our annual impairment test date, the Company performed a qualitative assessment and identified no events or circumstances that indicated that there existed a more likely than not probability of impairment of goodwill. The following table presents the carrying amounts of goodwill for each of the Companys reportable segments. Performance and Wake Leisure Recreation and Sport Fishing Total Gross $ 28,493 $ 36,238 $ $ 64,731 Accumulated impairment loss ( 36,238 ) ( 36,238 ) Goodwill, net at June 30, 2025 28,493 28,493 Acquired in business combination 105,599 105,599 Goodwill, net at June 30, 2026 $ 28,493 $ $ 105,599 $ 134,092 During fiscal 2026, as a result of the Marine Products Transaction, the Company recognized $ 105.6 million of goodwill within the Recreation and Sport Fishing segment. See Note 4 Business Combinations for further information. Other Intangible Assets The following table presents the carrying amount of Other i …

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11. INCOME TAXES The Company adopted ASU No. 2023-09, Improvements to Income Tax Disclosures, for the annual disclosures for the year ended June 30, 2026, on a prospective basis. Comparative financial information for prior periods has not been restated and continues to be reported under the accounting standards in effect for those periods. For the years ended June 30, the sources of income (loss) before income tax expense were as follows: 2026 2025 2024 Domestic income $ 1,275 $ 13,560 $ 29,956 Foreign income (loss) 72 ( 25 ) 17 Total income from continuing operations before income tax expense: $ 1,347 $ 13,535 $ 29,973 For the years ended June 30, the components of the provision for income taxes for continuing operations are as follows: 2026 2025 2024 Current income tax (benefit) expense: Federal $ ( 936 ) $ 3,827 $ 6,870 State 786 1,182 1,860 Total current tax (benefit) expense $ ( 150 ) $ 5,009 $ 8,730 Deferred tax expense (benefit): Federal $ 2,491 $ ( 1,923 ) $ ( 2,072 ) Foreign 10 State 597 ( 266 ) 72 Total deferred tax expense (benefit) 3,098 ( 2,189 ) ( 2,000 ) Income tax expense $ 2,948 $ 2,820 $ 6,730 For the year ended June 30, 2026, a reconciliation of the expected tax provision at the statutory federal income tax rate to the Companys recorded tax provision consisted of the following, subsequent to the adoption of ASU No. 2023-09 (in thousands, except percentages): 2026 Amount Percent U.S. Federal Statutory Rate 279 21.00 % State and local income taxes, net of fed …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

New Accounting Pronouncements Issued And Adopted Income Taxes ASU No. 2023-09, Improvements to Income Tax Disclosures, requires entities to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and provide more details about the reconciling items in some categories if items meet a quantitative threshold. Entities would have to provide qualitative disclosures about the new categories. The guidance will require all entities to disclose income taxes paid, net of refunds, disaggregated by federal (national), state and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on a quantitative threshold. The guidance makes several other changes to the disclosure requirements. Entities are required to apply the guidance prospectively, with the option to apply it retrospectively. The guidance is effective for annual periods beginning after December 15, 2024. The adoption of this standard did not have an impact on the Companys consolidated financial statements. New Accounting Pronouncements Issued But Not Yet Adopted Income Statement ASU No. 2024-03, Reporting Comprehensive Income Expense Disaggregation Disclosures. ASU No. 2024-03, as amended by ASU No. 2025-01, requires public entities to provide disaggregated disclosures of certain categories of expenses on an annual and interim basis, including purchases of inventory, employee compensation, depreciation, and intangibles asset …

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14. RELATED PARTY TRANSACTIONS 255 RC, LLC The Company owns a 50 % interest in 255 RC, LLC, a limited liability company formed for the joint ownership of a corporate aircraft. The Company accounts for its investment in 255 RC under the equity method of accounting. The Company is party to an operating lease and management arrangement with 255 RC for use of the aircraft. Pursuant to the arrangement, we share fixed lease expenses with 255 RC on an equal basis and are solely responsible for lease costs directly attributable to our business flights actually taken during an applicable billing period. During fiscal 2026, the Company recorded aircraft-related operating costs, including rent and its allocable share of certain fixed operating costs, of $ 0.1 million. As of June 30, 2026, the Company had a payable of $ 2.3 million due to 255 RC. The carrying value of the Company's investment in 255 RC was $ 4.3 million as of June 30, 2026. Transition Services Agreement In connection with the Marine Products Transaction, we entered into a Transition Services Agreement with RPC, Inc. LOR, Inc., a holder of greater than 10 % of our common stock, is the largest shareholder of RPC. Pursuant to the Transition Services Agreement, RPC, Inc. (i) provides certain administrative services to us on a cost reimbursement basis that were previously provided to Marine Products prior to the Marine Products Transaction and (ii) will continue to administer the RPC, Inc. 401(k) Plan to certain of our employ …

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2. REVENUE RECOGNITION The following tables present the Companys net sales by major product category for each reportable segment. Year Ended June 30, 2026 Performance and Wake Leisure Recreation and Sport Fishing Total Major Product Categories: Boats and trailers $ 256,884 $ 42,672 $ 32,848 $ 332,404 Parts 11,524 1,054 478 13,056 Other revenue 2,769 674 3,443 Total $ 271,177 $ 44,400 $ 33,326 $ 348,903 Year Ended June 30, 2025 Performance and Wake Leisure Total Major Product Categories: Boats and trailers $ 226,016 $ 41,020 $ 267,036 Parts 11,704 1,692 13,396 Other revenue 3,043 728 3,771 Total $ 240,763 $ 43,440 $ 284,203 Year Ended June 30, 2024 Performance and Wake Leisure Total Major Product Categories: Boats and trailers $ 245,963 $ 57,832 $ 303,795 Parts 13,567 1,242 14,809 Other revenue 3,206 541 3,747 Total $ 262,736 $ 59,615 $ 322,351 For fiscal 2026 , the Companys top ten dealers accounted for approximately 34 % of our net sales and none of our dealers individually accounted for more than 10 % of our total net sales. For fiscal 2025, the Companys top ten dealers accounted for approximately 34 % of our net sales and none of our dealers individually accounted for more than 10 % of our total net sales. For fiscal 2024, the Companys top ten dealers accounted for approximately 31 % of our net sales and none of our dealers individually accounted for more than 10 % of our total net sales. On a consolidated basis, international sales accounted for 11.3 %, 11.4 %, and 14.0 % …

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16. SEGMENT INFORMATION Operating segments are identified as components of an enterprise about which discrete financial information is available for evaluation by the CODM in making decisions on how to allocate resources and assess performance. For the year ended June 30, 2026 , the Companys CODM regularly assessed the operating performance of the Companys boat brands under three operating and reportable segments: The Performance and Wake segment, consisting of our MasterCraft brand, produces boats at its Vonore, Tennessee facility. These are premium recreational performance sport boats primarily used for water skiing, wakeboarding, wake surfing, and general recreational boating. The Leisure segment, consisting of our Crest and Balise brands, produces pontoon boats at its Owosso, Michigan facility. Pontoon boats are primarily used for general recreational boating. The Recreation and Sport Fishing segment, consisting of our Chaparral and Robalo brands, produces recreational and sport fishing boats at its Nashville, Georgia facility. Each segment distributes its products through its own independent dealer network. Each segment also has its own management structure which is responsible for the operations of the segment and is directly accountable to the CODM for the operating performance of the segment, which is regularly assessed by the CODM who allocates resources based on that performance. The Company files a consolidated income tax return and does not allocate income taxes a …

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1 . SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). The consolidated financial statements include the accounts of MasterCraft Boat Holdings, Inc. (Holdings) and its wholly owned subsidiaries from the dates of their acquisitions. Holdings and its subsidiaries collectively are referred to herein as the Company. The Company also owns a 50 % interest in an unconsolidated joint venture, which is accounted for under the equity method (see Note 14). All intercompany accounts and transactions have been eliminated in consolidation. Holdings has no independent operations and no material assets, other than its wholly owned equity interests in its subsidiaries, as of June 30, 2026 and 2025, and no material liabilities. As of June 30, 2026 and 2025 , Holdings had no material contingencies, long-term obligations, or guarantees other than a guarantee of its subsidiaries long-term debt (see Note 10). Discontinued Operations In fiscal 2025, the Company completed the Aviara Transaction and the Aviara Facility Sale. The Company's sale of the business represents an exit from the luxury dayboat category, a strategic shift that has a significant effect on the Companys operations and financial results, and as such, qualifies for reporting as discontinued operations. In fiscal 2023, the Company sold its Nauti …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing