Company: ONEW
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001772921-25-000025
Chunk: 130

Company: OneWater Marine Inc.
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 8
Chunk 130
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 sales arrangements (e.g., trade-ins, brokerage, consigned and wholesale), which causes periodic and seasonal fluctuations in the average sales price. The increase in pre-owned boat sales was primarily attributable to the increase in both units sold and average unit price. 

Finance & Insurance Income

We generate revenue from arranging finance & insurance products, including financing, insurance and extended warranty contracts, to customers through various third-party financial institutions and insurance companies. Finance & insurance income increased by $0.3 million, or 1.9%, to $15.0 million for the three months ended March 31, 2025 from $14.7 million for the three months ended March 31, 2024. The increase was primarily due to an increase in penetration. We remain very focused on improving sales of finance & insurance products throughout our dealer network and implementing best practices at acquired dealer groups and existing dealerships. Finance & insurance income is recorded net of related fees, including fees charged back due to any early cancellation of loan or insurance contracts by a customer. Since finance & insurance income is fee-based, we do not incur any related cost of sale.

Service, Parts & Other Sales

Service, parts & other sales increased by $1.7 million, or 2.4%, to $69.3 million for the three months ended March 31, 2025 from $67.6 million for the three months ended March 31, 2024. The increase in service, parts & other sales is primarily due to the Company's focus on increasing this higher margin business. Revenues for the Distribution segment are reported in service, parts & other sales and totaled $37.2 million and $38.2 million for the three months ended March 31, 2025 and 2024, respectively.

Gross Profit

Overall, gross profit decreased by $10.0 million, or 8.3%, to $110.4 million for the three months ended March 31, 2025 from $120.4 million for the three months ended March 31, 2024. This decrease was primarily due to new and pre-owned boat pricing, including the impact of select brands the Company is exiting. Overall gross margin decreased 180 basis points to 22.8% for the three months ended March 31, 2025 from 24.6% for the three months ended March 31, 2024 due to the factors noted below.

New Boat Gross Profit

New boat gross profit decreased by $9