Sport boat manufacturer MasterCraft (NASDAQ:MCFT) announced better-than-expected revenue in Q2 CY2026, with sales up 63.4% year on year to $129.9 million. On top of that, next quarter’s revenue guidance ($147 million at the midpoint) was surprisingly good and 29% above what analysts were expecting. Its non-GAAP profit of $0.67 per share was 10.7% above analysts’ consensus estimates.
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MasterCraft (MCFT) Q2 CY2026 Highlights:
- Revenue: $129.9 million vs analyst estimates of $103.6 million (63.4% year-on-year growth, 25.5% beat)
- Adjusted EPS: $0.67 vs analyst estimates of $0.61 (10.7% beat)
- Adjusted EBITDA: $20.48 million vs analyst estimates of $17.8 million (15.8% margin, 15.1% beat)
- Revenue Guidance for Q3 CY2026 is $147 million at the midpoint, above analyst estimates of $114 million
- Adjusted EPS guidance for Q3 CY2026 is $0.40 at the midpoint, above analyst estimates of $0.35
- EBITDA guidance for Q3 CY2026 is $16 million at the midpoint, above analyst estimates of $13.65 million
- Operating Margin: -4.9%, down from 7.5% in the same quarter last year
- Free Cash Flow Margin: 11.3%, down from 12.5% in the same quarter last year
- Market Capitalization: $552 million
Company Overview
Started by a waterskiing instructor, MasterCraft (NASDAQ:MCFT) specializes in designing, manufacturing, and selling sport boats.
Revenue Growth
A company’s long-term sales performance can indicate its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last five years, MasterCraft’s demand was weak and its revenue declined by 7.9% per year. This wasn’t a great result and is a sign of poor business quality.
We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. MasterCraft’s annualized revenue declines of 2.4% over the last two years suggest its demand continued shrinking. 
This quarter, MasterCraft reported magnificent year-on-year revenue growth of 63.4%, and its $129.9 million of revenue beat Wall Street’s estimates by 25.5%. Company management is currently guiding for a 113% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 47.8% over the next 12 months, an improvement versus the last two years. This projection is eye-popping and indicates its newer products and services will fuel better top-line performance.
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Operating Margin
MasterCraft’s operating margin has been trending down over the last 12 months and averaged 1.6% over the last two years. The company’s profitability was mediocre for a consumer discretionary business and shows it couldn’t pass its higher operating expenses onto its customers.
This quarter, MasterCraft generated an operating margin profit margin of negative 4.9%, down 12.3 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Sadly for MasterCraft, its EPS declined by 12.6% annually over the last five years, more than its revenue. This tells us the company struggled because its fixed cost base made it difficult to adjust to shrinking demand.
In Q2, MasterCraft reported adjusted EPS of $0.67, up from $0.40 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects MasterCraft’s full-year EPS to grow 16.6% from $1.69 to $1.97.
Key Takeaways from MasterCraft’s Q2 Results
We were impressed by MasterCraft’s optimistic EBITDA guidance for next quarter, which blew past analysts’ expectations. We were also excited its revenue outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 5.2% to $23.99 immediately following the results.
MasterCraft had an encouraging quarter, but one earnings result doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. 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).