OneWater (NASDAQ:ONEW) Exceeds Q3 CY2025 Expectations

Boat and marine products retailer OneWater Marine (NASDAQ:ONEW) reported revenue ahead of Wall Streets expectations in Q3 CY2025, with sales up 21.8% year on year to $460.1 million. The company expects the full year’s revenue to be around $1.88 billion, close to analysts’ estimates. Its non-GAAP loss of $0 per share was significantly below analysts’ consensus estimates.

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Company Overview

A public company since early 2020, OneWater Marine (NASDAQ:ONEW) sells boats, yachts, and other marine products.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can have short-term success, but a top-tier one grows for years.

With $1.87 billion in revenue over the past 12 months, OneWater is a small retailer, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with suppliers. On the bright side, it can grow faster because it has more white space to build new stores.

As you can see below, OneWater’s sales grew at an impressive 16% compounded annual growth rate over the last six years (we compare to 2019 to normalize for COVID-19 impacts) despite not opening many new stores.

This quarter, OneWater reported robust year-on-year revenue growth of 21.8%, and its $460.1 million of revenue topped Wall Street estimates by 12.5%.

Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months, a deceleration versus the last six years. This projection is underwhelming and indicates its products will see some demand headwinds.

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Store Performance

Number of Stores

The number of stores a retailer operates is a critical driver of how quickly company-level sales can grow.

Over the last two years, OneWater has kept its store count flat while other consumer retail businesses have opted for growth.

When a retailer keeps its store footprint steady, it usually means demand is stable and it’s focusing on operational efficiency to increase profitability.

Note that OneWater reports its store count intermittently, so some data points are missing in the chart below.

Same-Store Sales

A company's store base only paints one part of the picture. When demand is high, it makes sense to open more. But when demand is low, it’s prudent to close some locations and use the money in other ways. Same-store sales gives us insight into this topic because it measures organic growth for a retailer's e-commerce platform and brick-and-mortar shops that have existed for at least a year.

OneWater’s demand within its existing locations has barely increased over the last two years as its same-store sales were flat. This performance isn’t ideal, and we’d be skeptical if OneWater starts opening new stores to artificially boost revenue growth.

In the latest quarter, OneWater’s same-store sales rose 23% year on year. This growth was a well-appreciated turnaround from its historical levels, showing the business is regaining momentum.

Key Takeaways from OneWater’s Q3 Results

We were impressed by how significantly OneWater blew past analysts’ revenue expectations this quarter. On the other hand, its full-year EBITDA guidance missed and its EBITDA fell short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock remained flat at $15.50 immediately after reporting.

OneWater’s latest earnings report disappointed. One quarter doesn’t define a company’s quality, so let’s explore whether the stock is a buy at the current price. If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.