Off The Hook Ys Inc.

## Capital Structure and Liquidity The company's liquidity position is characterized by a current ratio of 1.1, which is close to the minimum comfort range, indicating potential liquidity constraints. The liquidity FPT (Free Cash Flow to Total Assets) is negative at -0.38, suggesting that the company is generating negative free cash flow, which could impact its ability to meet short-term obligations without external financing. The company's market capitalization is $62.24 million, with a price-to-book ratio of 6.66, indicating that the market is valuing the company's equity at a premium relative to its book value.

## Profitability and Returns The company's profitability is underperforming, with a net loss of $3.47 million for the quarter ended March 31, 2026, and a return on equity (ROE) of -33.07%, which is significantly below the industry median. The return on assets (ROA) is also negative at -5.38%, indicating that the company is not generating a positive return on its assets. The operating margin is negative at -9.61%, and the gross margin is 10.62%, which is lower than the industry median, suggesting that the company is struggling to convert revenue into profit.

## Segments and Geographic Exposure The company's revenue is primarily derived from the sale of new and used boats, with a significant portion of inventory consisting of used boats, which accounted for $40.91 million of the total inventory of $46.40 million as of March 31, 2026. The company's operations are concentrated in the United States, and there is no indication of significant international exposure in the provided data.

## Growth Trajectory The company's revenue for the quarter ended March 31, 2026, was $29.84 million, representing a significant increase from the previous quarter's revenue of $12.43 million. However, the net loss of $3.47 million indicates that the company is not yet profitable and may require further investment to achieve sustainable growth. The company's capital expenditures for the quarter were $2.88 million, which is a substantial investment that could be aimed at expanding its operations or improving its facilities.

## Risk Factors The company faces several risk factors, including liquidity constraints and the potential for dilution. The current ratio of 1.1 is close to the minimum comfort range, and the company has mentioned dilution or offering risk in its source documents. The company's debt-to-equity ratio is 0.15, indicating a relatively low level of leverage, but the short-term debt of $1.50 million could pose a risk if not managed properly. The company's accumulated deficit of $9.97 million as of March 31, 2026, suggests that it has not yet achieved profitability and may need to raise additional capital to continue operations.

## Recent Events The company filed a 10-Q report for the quarter ended March 31, 2026, which provides an update on its financial condition and results of operations. The report indicates that the company has a significant amount of inventory, with used boats accounting for the majority of the inventory. The company also has a substantial amount of floor plan notes payable, which are short-term obligations related to the financing of inventory. The company's cash and cash equivalents have decreased from $12.43 million at the end of December 2025 to $5.33 million at the end of March 2026, indicating a significant outflow of cash during the quarter.

Net income surged 153% year-over-year to $991,684, demonstrating significant profitability improvement despite revenue headwinds.

The company maintains a low leverage band with a debt-to-equity ratio of 0.0052, indicating minimal financial risk.

Cash conversion of 6.02 ranks as best-in-class compared to the cohort median of 1.14.

Capex to revenue ratio of 9.64% is best-in-class, suggesting efficient capital allocation relative to peers.

Current ratio of 1.29 indicates adequate short-term liquidity to cover immediate obligations.

Revenue declined 17.4% year-over-year to $98.9 million, signaling weakening top-line performance.

Net margin of -11.62% ranks in the bottom quartile, indicating poor profitability relative to peers.

Revenue $29.8M; Operating income -$2.9M.

• ▍Revenue $29.8M
• ▍Operating income -$2.9M
• ▍Net margin -11.6%

Revenue $82.6M; Operating income $2.2M.

• ▍Revenue $82.6M
• ▍Operating income $2.2M
• ▍Net margin 0.9%

Revenue $119.9M; Operating income $462.9k.

• ▍Revenue $119.9M
• ▍Operating income $462.9k
• ▍Net margin -1.6%

Revenue $99.0M; Operating income $2.7M.

• ▍Revenue $99.0M
• ▍Operating income $2.7M
• ▍Net margin 1.0%