Massimo Group
For the period ended Mar 31, 2026. Filed May 15, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 15, 2026
MAMO$0.96-0.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-07.
0001493152-25-021309
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-15.
0001493152-26-023439
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 120 previous paragraphs and 85 current paragraphs.
27 unchanged; 14 reworded; 42 added; 77 removed; 2 previous and 2 current paragraphs rearranged.
Tables are not compared: 13 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (42)
Current report
Revenue from sales of UTVs, ATVs and e-bikes decreased by $3.1 million, or 20.0%, from $15.4 million for the three months ended March 31, 2025 to $12.3 million for the three months ended March 31, 2026. The decrease was primarily attributable to a continued strategic decline in wholesale shipment volumes to our major big-box retail partners, as we continued to navigate a volatile geopolitical and macroeconomic environment.
Current report
Consistent with the trends experienced during fiscal year 2025, uncertainty surrounding tariffs, trade restrictions and potential trade barriers continued to make it difficult for major retail customers to predict costs and plan inventory purchases effectively. In addition, ongoing inflationary pressures and the prolonged impact of elevated interest rates continued to weigh on consumer demand for discretionary, higher-priced recreational vehicles.
Current report
As a result, certain big-box retail customers continued to adopt a conservative inventory procurement strategy during the first quarter of 2026. Rather than forcing excess inventory into the wholesale channel through aggressive discounting, we continued to align our shipment cadence with actual retail sell-through rates and support a disciplined channel inventory management approach. While this strategy reduced recognized wholesale revenue during the period, we believe it helped preserve our brand pricing, reduce channel inventory risk and position our distribution network for the rollout of our higher-margin, next-generation vehicle lineup.
Current report
Revenue from sales of Pontoon Boats decreased by $0.1 million, or 28.2%, from $0.5 million during the three months ended March 31, 2025 to $0.4 million for the three months ended March 31, 2026. The decrease primarily reflected the continued softness in the recreational marine sector, which remained affected by elevated interest rates, inflationary pressures and tighter consumer and dealer financing conditions.
Current report
Consistent with our operating approach in fiscal year 2025, we continued to exercise discipline in managing wholesale shipments to dealers and avoided pushing inventory into a financially constrained distribution channel. Dealer floorplan financing conditions remained challenging, which continued to limit wholesale purchasing appetite across the industry. In response, we maintained a cautious shipment strategy while continuing to evaluate opportunities to expand higher-margin and more controllable sales channels, including our Direct-to-Consumer approach. Although this disciplined approach reduced recognized revenue from Pontoon Boats during the first quarter of 2026, we believe it helped mitigate inventory and credit risks within the marine business.
Current report
Cost of revenue and gross profit
Current report
Total cost of revenue decreased by $3.0 million, or 28.4%, from $10.7 million for the three months ended March 31, 2025 to $7.6 million for the three months ended March 31, 2026. This decrease was primarily attributable to lower overall sales volume, particularly within our core UTVs, ATVs and e-bikes segment, as we continued to execute our disciplined wholesale shipment strategy and align production and inventory levels with actual retail demand.
Current report
Cost of revenue for our core UTVs, ATVs and e-bikes segment decreased by $3.6 million, or 32.8%, from $11.0 million for the three months ended March 31, 2025 to $7.4 million for the three months ended March 31, 2026. This reduction was broadly consistent with our strategically recalibrated wholesale shipment volumes to major big-box retail partners. In addition, the decrease in cost of revenue outpaced the 20.0% decline in segment revenue, reflecting management’s continued efforts to optimize inbound component sourcing, improve manufacturing efficiency and control landed costs, including freight and duty-related costs, despite continued tariff uncertainty and inflationary pressure.
Current report
Cost of revenue for our Pontoon Boats segment decreased by $0.2 million, or 46.3%, from $0.5 million for the three months ended March 31, 2025 to $0.3 million for the three months ended March 31, 2026. This decrease was primarily driven by lower sales volume in the recreational marine business as we continued to manage wholesale shipments cautiously in response to weak industry demand, elevated interest rates and tighter dealer floorplan financing conditions. Consistent with our fiscal year 2025 operating approach, we avoided pushing inventory into a financially constrained wholesale channel and continued to focus on protecting per unit economics and brand pricing.
Current report
Our gross profit increased by $0.9 million, or 20.1%, from $4.2 million for the three months ended March 31, 2025 to $5.1 million for the three months ended March 31, 2026. Our overall gross margin increased from 28.4% for the three months ended March 31, 2025 to 39.9% for the three months ended March 31, 2026. The improvement in gross margin was primarily attributable to a more favorable product mix, improved cost controls, enhanced sourcing efficiency and the absence in the first quarter of 2026 of the cost impact associated with the repurchase of inventory under a litigation settlement recorded in the first quarter of 2025.
Current report
For our UTVs, ATVs and e-bikes segment, gross profit increased by $0.5 million, from $4.4 million for the three months ended March 31, 2025 to $5.0 million for the three months ended March 31, 2026, and gross margin improved from 28.8% to 40.8%. This margin expansion was primarily driven by a favorable shift in product mix toward higher-margin models, improved component sourcing and continued discipline in managing freight, duty and other landed costs. These measures helped offset the impact of lower wholesale shipment volumes and ongoing macroeconomic cost pressures.
Current report
For our Pontoon Boats segment, gross profit increased by $0.1 million, from $35,619 for the three months ended March 31, 2025 to $112,089 for the three months ended March 31, 2026, and gross margin improved from 6.9% to 30.4%. This improvement reflected our continued pivot away from lower-margin wholesale clearing activities and toward a more disciplined sales approach, including higher-margin and more controllable sales channels. The improvement also benefited from enhanced material cost controls and more efficient management of inbound shipping and landed costs within our marine product line.
Current report
Repurchase of goods and cost of inventory recovered from litigation settlement
Current report
On February 19, 2025, we entered into a settlement agreement with a dealer to repurchase certain ATVs and pontoon boats at an agreed percentage of the original invoices amount. In connection with this settlement, we recorded a sales reduction of $1.0 million and recognized $0.8 million as the cost of repurchased inventory in the first quarter of fiscal 2025. As a result, our gross profit was reduced by $0.2 million.
Current report
Our selling expenses mainly include warranty expense, advertising and promotion expense, shipping and handling fees and merchant service fees. Selling expenses decreased by $0.6 million, or 32.4%, from $1.9 million for the three months ended March 31, 2025 to $1.3 million for the three months ended March 31, 2026. As a percentage of total revenue, selling expenses decreased from 12.5% for the three months ended March 31, 2025 to 9.9% for the three months ended March 31, 2026.
Current report
The decrease was primarily attributable to lower shipping and handling expenses associated with the reduction in wholesale shipment volumes to our major big-box retail customers. Historically, higher sales volumes of UTVs and ATVs to these customers resulted in elevated outbound freight costs, as we generally cover shipping costs for these accounts. During the first quarter of 2026, as we continued to execute a disciplined wholesale shipment strategy and align shipment cadence with actual retail sell-through rates, our outbound freight and related selling costs decreased accordingly.
Current report
The decrease was also supported by continued efficiencies in warranty-related expenses. We continued to benefit from enhanced quality control measures and our traveling technician team, which allowed us to manage repair costs and respond to customer service requests more efficiently. As a result, the decline in selling expenses outpaced the decrease in total revenue during the period, contributing to the improvement in operating efficiency for the three months ended March 31, 2026.
Current report
Our salaries and benefits increased by $0.4 million, or 30.8%, from $1.3 million for the three months ended March 31, 2025 to $1.8 million for the three months ended March 31, 2026, representing 41.6% and 31.8% of our total general and administrative expenses for the three months ended March 31, 2026 and 2025, respectively. The increase was primarily due to a slight increase in headcount during the first quarter of fiscal 2026 compared with the same period in the prior year.
Current report
Our rent expenses increased by $0.1 million, or 12.8%, from $0.9 million for the three months ended March 31, 2025 to $1.0 million for the three months ended March 31, 2026, representing 24.1% and 21.4% of our total general and administrative expenses for the three months ended March 31, 2026 and 2025, respectively. The increase was primarily due to higher renewal rent rates and the continued impact of lease arrangements entered into in prior periods.
Current report
Our professional fees decreased by $34,404, or 6.0%, from $572,267 for the three months ended March 31, 2025 to $537,863 for the three months ended March 31, 2026, representing 12.7% and 13.6% of our total general and administrative expenses for the three months ended March 31, 2026 and 2025, respectively.
Current report
Our insurance expenses decreased by $0.2 million, or 47.2%, from $426,707 for the three months ended March 31, 2025 to $225,267 for the three months ended March 31, 2026, representing 5.3% and 10.1% of our total general and administrative expenses for the three months ended March 31, 2026 and 2025, respectively.
Current report
Overall, the increase in salaries and benefits and rent expenses was offset by decreases in professional fees, insurance expenses and other general administrative expenses, resulting in general and administrative expenses remaining relatively stable for the three months ended March 31, 2026 compared with the same period in 2025.
Current report
Research and development expenses
Current report
Our research and development expenses decreased by $0.2 million, or 25.3%, from $0.8 million for the three months ended March 31, 2025 to $0.6 million for the three months ended March 31, 2026. As a percentage of total revenue, research and development expenses decreased from 5.6% for the three months ended March 31, 2025 to 4.9% for the three months ended March 31, 2026.
Current report
The decrease was primarily attributable to the timing and scope of product development activities during the first quarter of 2026. Following the completion of certain development initiatives in prior periods, we continued to focus our research and development efforts on selected higher-margin vehicle models and product enhancements rather than broad-based development spending. We expect to continue investing in research and development activities to support our next-generation product lineup, while maintaining discipline over the timing and scale of such spending.
Current report
Loss from operations
Current report
Loss from operations decreased by $1.7 million, or 61.6%, from $2.7 million for the three months ended March 31, 2025 to $1.0 million for the three months ended March 31, 2026. The improvement was primarily attributable to an increase in gross profit of $0.9 million and a decrease in total operating expenses of $0.8 million.
Current report
The increase in gross profit was driven by improved gross margin in both our UTVs, ATVs and e-bikes segment and our Pontoon Boats segment, as discussed above. The decrease in operating expenses was mainly due to lower selling expenses resulting from reduced wholesale shipment volumes and related outbound freight costs, as well as lower research and development expenses during the period.
Current report
Other income, net decreased by $75,917, or 96.5%, from $78,698 for the three months ended March 31, 2025 to $2,781 for the three months ended March 31, 2026. The decrease was primarily attributable to the absence of certain miscellaneous or non-recurring income items that benefited the first quarter of fiscal 2025. Other income, net for the three months ended March 31, 2026 represented a normalized level of incidental income without the impact of significant one-time settlement or other non-operating income items.
Current report
Unrealized loss on crypto assets
Current report
We recorded an unrealized loss on crypto assets of $135,125 for the three months ended March 31, 2026. No such unrealized loss was recorded for the three months ended March 31, 2025. The unrealized loss was primarily attributable to changes in the fair value of crypto assets held by the Company during the period.
Current report
Loss before income taxes decreased by $1.5 million, or 55.2%, from $2.6 million for the three months ended March 31, 2025 to $1.2 million for the three months ended March 31, 2026. The improvement was primarily attributable to an increase in gross profit and a decrease in total operating expenses, partially offset by the decrease in total other income, net, as discussed above.
Current report
We recognized an income tax recovery of $0.2 million for the three months ended March 31, 2026, compared to an income tax recovery of $0.5 million for the three months ended March 31, 2025. The decrease in income tax recovery was primarily attributable to the lower loss before income taxes and changes in temporary differences recognized during the respective periods.
Current report
Net (loss) income
Current report
Net loss decreased by $1.1 million, or 51.8%, from $2.1 million for the three months ended March 31, 2025 to $1.0 million for the three months ended March 31, 2026. The improvement was primarily attributable to increased gross profit and lower operating expenses, partially offset by the unrealized loss on crypto assets and lower income tax recovery during the first quarter of 2026.
Current report
Net cash used in operating activities was $1.4 million for the three months ended March 31, 2026. The difference between our net cash used in operating activities and our net loss of $1.0 million for the three months ended March 31, 2026 was primarily due to the combined effect of non-cash adjustments and changes in working capital. Non-cash adjustments primarily included non-cash operating lease expense of $0.4 million, fair value loss on crypto assets of $0.1 million, depreciation of $39,062, provision of allowance for expected credit loss of $25,995, loss on disposal of fixed assets of $24,346 and amortization of finance lease right-of-use assets of $10,380, partially offset by deferred income tax recovery of $0.2 million and amortization of share-based compensation related to options granted of $29,395. Changes in operating assets and liabilities mainly resulted from: (i) an increase in accounts receivable of $1.3 million; (ii) a decrease in inventories of $2.1 million; (iii) a decrease in prepaid and other current assets of $2.0 million; (iv) a decrease in accounts payable of $5.4 million; (v) a decrease in other payable, accrued expense and other current liabilities of $57,383; (vi) a decrease in operating lease liabilities of $0.6 million; and (vii) a decrease in contract liabilities of $90,030.
Current report
Net cash used in operating activities was $3.3 million for the three months ended March 31, 2025. The difference between our net cash used in operating activities and our net loss of $2.1 million for the three months ended March 31, 2025 was primarily due to the combined effect of non-cash adjustments and changes in working capital. Non-cash adjustments primarily included non-cash operating lease expense of $0.5 million, provision of allowance for expected credit loss of $50,009, depreciation of $33,502, amortization of share-based compensation related to RSU granted of $195,940, amortization of share-based compensation related to options granted of $90,480 and amortization of finance lease right-of-use assets of $10,149, partially offset by deferred income tax recovery of $0.5 million. Changes in operating assets and liabilities mainly resulted from: (i) an increase in accounts receivable of $0.8 million; (ii) a decrease in inventories of $2.9 million; (iii) an increase in advances to suppliers of $94,328; (iv) a decrease in prepaid and other current assets of $0.2 million; (v) a decrease in accounts payable of $3.8 million; (vi) an increase in other payable, accrued expense and other current liabilities of $0.8 million; (vii) a decrease in warranty liabilities of $116,755; (viii) a decrease in return liabilities of $161,983; and (ix) a decrease in operating lease liabilities of $0.5 million.
Current report
Net cash used in investing activities was $0.3 million for the three months ended March 31, 2026, primarily due to acquisition of property and equipment of $262,457, partially offset by proceeds from sales of property and equipment of $10,000.
Current report
Net cash used in investing activities was $3.0 million for the three months ended March 31, 2025, primarily due to purchase of short-term investment of $3.0 million.
Current report
Net cash used in financing activities was $11,582 for the three months ended March 31, 2026, primarily due to repayment of finance lease liabilities.
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Removed paragraphs (77)
Previous report
For the Three and Nine Months Ended September 30, 2025 and 2024
Previous report
Supported by steady upward sales increase and effective operating expense controls, the Company’s financial performance improved significantly from the first to the third quarter of 2025. The company’s revenue showed an overall upward trend, increasing from $14.9 million in Q1 to $18.9 million in Q2, before slightly edging down to $17.0 million in Q3. The above fluctuation in revenue is primarily attributed to the continued recovery in sales, coupled with a temporary decline in sales volume resulting from a modest price increase implemented in the third quarter.
Previous report
From the first to the third quarter of 2025, the Company’s gross profit showed a steady upward trend, increasing from $4.2 million in Q1 to $6.9 million in Q2 and reaching $7.1 million in Q3. This improvement was primarily driven by higher sales prices and enhanced cost control measures on the purchasing side.
Previous report
As a result, the Company’s net profit (loss) has been increasing steadily from the first quarter to the third quarter of 2025, the company transitioned from a net loss of 2.1 million in Q1 to turning a profit in Q2 with a net income of 0.07 million. By Q3, profitability strengthened further, with net profit rising to $1.5 million.
Previous report
Three Months Ended September 30, 2025 Compared to Three Months Ended September 30, 2024
Previous report
Revenues
Previous report
Revenues decreased by $7.9 million, or 30.7%, from $25.6 million for the three months ended September 30, 2024, to $17.0 million for the three months ended September 30, 2025. The decrease in revenue was primarily due to the contraction of the U.S. economy and reduced consumer spending. New tariffs contributed to rising inflation, with U.S. consumer inflation reported at 2.8% year-over-year in February 2025, and expectations of further increases. This inflationary environment, coupled with high, long-lasting interest rates, led to reduced spending and demand from retail end customers for discretionary goods, particularly luxury items like yachts and pontoon boats. At the same time, the uncertainty surrounding tariffs, trade restrictions, and potential trade barriers stemming from President Trump’s policies, which were further exacerbated in January 2025, caused our major big-box customers to reduce their orders.
Previous report
Revenue from sales of UTVs, ATVs and electric bikes decreased by $8.7 million, or 34.7%, from $25.1 million for the three months ended September 30, 2024 to $16.4 million for the three months ended September 30, 2025. The decrease in revenue was primarily attributed to a decline in sales volume from big box stores. Due to the uncertainty surrounding tariffs, trade restrictions, and potential trade barriers stemming from President Trump’s policies, which were further exacerbated in January 2025. These geopolitical factors have created a volatile market environment, leading to reduced confidence among our major retail customers, especially big-box stores that typically place large volume orders.
Previous report
The uncertainty surrounding future tariffs and trade restrictions has made it difficult for these big-box customers to predict costs and plan inventories and orders effectively. As a result, many of them have taken a more conservative approach to ordering, significantly reducing their purchase volumes in anticipation of higher costs and possible delays in shipping. This has further contributed to the overall decline in sales.
Previous report
Additionally, ongoing inflationary pressures, coupled with the prolonged impact of high interest rates, have put a strain on consumer spending. These macroeconomic factors have led to decreased demand for non-essential and higher-priced goods, including recreational vehicles like UTVs, ATVs, and electric bikes. Retailers, in turn, have been cautious about placing orders for items that may not move as quickly due to these reduced consumer spending patterns. The combination of geopolitical and economic uncertainties has resulted in an environment where both consumers and retailers are hesitant to make significant purchasing decisions, leading to the sharp decline in sales of these products.
Previous report
Revenue from sales of Pontoon Boats increased by $0.1 million, or 0.4%, from $0.5 million for the three months ended September 30, 2024 to $0.6 million for the three months ended September 30, 2025. Although an industry-wide downturn caused by high interest rates and inflation, which have impacted the consumption of non-essential goods. In 2025, we shifted our sales strategy from dealership channels back to direct engagement with retail customers. Through targeted social media campaigns and community-based marketing initiatives, we successfully attracted some local retail customers, resulting in a modest improvement in sales performance.
Previous report
Gross profit
Previous report
Our gross profit increased by $0.2 million, or 2.6%, from $7.0million in the third quarter of fiscal 2024, to $7.1 million in the third quarter of fiscal 2025. The gross profit margin was 42.0% in the third quarter of fiscal 2025, compared with 27.2% in the same period last year. The increase in gross margin was mainly due to an increase in sales compared to the first quarter as recovered to last year’s levels in September, lifting the quarterly average and due to the increasing higher sales price compared with the last year’s
Previous report
The cost of revenue on UTVs, ATVs and e-bikes decreased by $8.6 million, or 47.3%, from $18.1 million in the third quarter of fiscal 2024 to $9.6 million in the third quarter of fiscal 2025, and the gross profit decreased by $0.13 million, or 2.0%, from $7.0 million in the third quarter of fiscal 2024 to $6.8 million in the third quarter of fiscal 2025. The gross margin increased by 13.9%, from 27.7% in the third quarter of fiscal 2024 to 41.6% in the third quarter of fiscal 2025. The decrease in the cost of revenue was primarily due to decreased product purchase cost, resulting from the decrease in sales volume. The increase in gross margin was primarily a result of selling some inventory at lower prices at our seasonal promotions in the third quarter of fiscal 2024, while the unit sales price is higher in the same period of fiscal 2025.
Previous report
The cost of revenue on Pontoon Boats decreased by $0.22 million, or 43.4%, from $0.51 million in the third quarter of fiscal 2024 to $0.29 million in the third quarter of fiscal 2025, and the gross profit increased by $0.3 million, or 4,820.4%, from $0.01 million in the third quarter of fiscal 2024 to $0.32 million in the third quarter of fiscal 2025. The gross margin increased by 51.7%, from 1.3% in the third quarter of fiscal 2024 to 53.0% in the third quarter of fiscal 2025. The increase in gross margin was primarily because of strategically focusing on clearing to sell Pontoon Boats in the third of fiscal 2025 compared to that of fiscal 2024.
Previous report
Our selling expenses mainly include warranty expense, advertising and promotion expense, shipping and handling fee and merchant service fee. These expenses decreased by $1.4 million, or 55.8%, from $2.6 million in the third quarter of fiscal 2024 to $1.2 million in the third quarter of fiscal 2025, representing 10.3% and 6.8% of our total revenue in the third quarter of fiscal 2025 and fiscal 2024, respectively. The decrease was primarily driven by a $0.3 million reduction in warranty expenses, reflecting improvements in quality control and customer service, and by a $0.6 million reduction in shipping and handling fee, reflecting the decrease of sales in the third quarter of fiscal 2025.
Previous report
Our general and administrative expenses primarily include salaries and benefits, professional fees, office expenses, travel expenses, insurance expenses, rent expense and depreciation expenses. General and administrative expenses decreased by $0.5 million, or 12.8%, from $3.9 million in the third quarter of fiscal 2024 to $3.4 million in the third quarter of fiscal 2025. The decrease was mainly due to increased rent expense, which were partly offset by a decrease in professional and legal fees. Our general and administrative expenses represented 20.7% and 15.2% of our total revenue in the third quarter of fiscal 2025 and the third quarter of fiscal 2024, respectively.
Previous report
Our salaries and benefits were $1.4 million and $1.3 million, representing 38.1% and 39.1% of our total general and administrative expenses in the third quarter of fiscal 2025 and in the third quarter of fiscal 2024, respectively. The slight decrease in balance was mainly due to increase for one-off salaries compensation paid to an employee as result of employment termination and the decrease of basic salaries and benefits due to the employment termination.
Previous report
Our rent expenses increased by $0.5 million or 95.1%, from $0.6 million in the third quarter of fiscal 2024 to $1.1 million in the third quarter of fiscal 2025, representing 30.1% and 15.4% of our total general and administrative expenses in the third quarter of fiscal 2025 and 2024, respectively. Our rent expense increased due to the higher renewal rent rate and the addition of a new lease agreement in the first quarter of fiscal 2025.
Previous report
Our professional fees decreased by $0.55 million or 73.5%, from $0.75 million in the third quarter of fiscal 2024 to $0.20 million in the third quarter of fiscal 2025, representing 5.7% and 21.5% of our total general and administrative expenses in the third quarter of fiscal 2025 and 2024, respectively. The decrease was primarily attributable to fewer ongoing lawsuits cases that require legal consulting service in the third quarter of fiscal 2025 when compared with same period in last year.
Previous report
Loss on litigation
Previous report
During the three months ended September 30, 2024, we recorded a one-time loss of approximate $3.6 million on legal judgment on lawsuit with Nebula. The Final Judgment on July 8, 2024 awarded Nebula $3.3 million in damages, $1.4 million in attorneys’ fees and other court cost and $1.1 million in interest on balances since September 15, 2020. We have recorded an additional accrual of $3.6 million as of September 30, 2024, bringing the total accrual related to this lawsuit to approximately $5.9 million. Massimo filed its appellant’s brief on January 31, 2025. Nebula filed its appellee’s brief on May 1, 2025. Massimo intends to continue vigorously defending the lawsuit and pursuing its appeal.
Previous report
Interest income (expenses)
Previous report
Our interest expense turned from $2,943 in the third quarter of fiscal 2024 to an interest income of $343 in the third quarter of fiscal 2025. The decrease in interest expense was mainly because we did not have any bank loans during this period
Previous report
Our other income was $147,946 in the third quarter of fiscal 2025, as compared with $210,701 in the third quarter of fiscal 2024, a decrease of $62,755, or 29.8%. The decrease was primarily related to we did not have such writing off a long outstanding negative balance of account receivable compared with the same period of the previous year.
Previous report
Income before income taxes
Previous report
We had an increase of $4.9 million in income before income taxes from a loss of $3.1 million in the third quarter of fiscal 2024 to approximately a profit of $1.9 million in the third quarter of fiscal 2025, respectively. The increase was primarily attributable to the fluctuation of gross profits and operating expenses discussed in the foregoing part.
Previous report
The income tax expense was approximately $0.4 million for the third quarter of fiscal 2025 and the income tax benefits was approximately $0.6 million for the third quarter of fiscal 2024, respectively. The increase in balance was mainly due to the increase in taxable income as discussed above.
Previous report
Net income
Previous report
We had net income of $1.5 million in the third quarter of fiscal 2025 compared to a net loss of $2.5 million in the third quarter of fiscal 2024, respectively. The increase was primarily due to fluctuation of revenues and gross profit, offset by a decrease in operating expenses as discussed above.
Previous report
Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024
Previous report
Revenues decreased by $40.3 million, or 44.3%, from $91.2 million for the nine months ended September 30, 2024, to $50.9 million for the nine months ended September 30, 2025. The decrease in revenue was primarily due to the contraction of the U.S. economy and reduced consumer spending. New tariffs contributed to rising inflation, with U.S. consumer inflation reported at 2.8% year-over-year in February 2025, and expectations of further increases. This inflationary environment, coupled with high, long-lasting interest rates, led to reduced spending and demand from retail end customers for discretionary goods, particularly luxury items like yachts and pontoon boats. At the same time, the uncertainty surrounding tariffs, trade restrictions, and potential trade barriers stemming from President Trump’s policies, which were further exacerbated in January 2025, caused our major big-box customers to reduce their orders.
Previous report
Revenue by Type
Previous report
Revenue from sales of UTVs, ATVs and e-bikes decreased by $38.6 million, or 43.9%, from $88.0 million for the nine months ended September 30, 2024 to $49.4 million for the nine months ended September 30, 2025. The decrease in revenue was primarily attributed to a decline in sales volume from big box stores. Due to the uncertainty surrounding tariffs, trade restrictions, and potential trade barriers stemming from President Trump’s policies, which were further exacerbated in January 2025. These geopolitical factors have created a volatile market environment, leading to reduced confidence among our major retail customers, especially big-box stores that typically place large volume orders.
Previous report
The uncertainty surrounding future tariffs and trade restrictions has made it difficult for these big-box customers to predict costs and plan inventories and orders effectively. As a result, many of them have taken a more conservative approach to ordering, significantly reducing their purchase volumes in anticipation of higher costs and possible delays in shipping. This has further contributed to the overall decline in sales.
Previous report
Additionally, ongoing inflationary pressures, coupled with the prolonged impact of high interest rates, have put a strain on consumer spending. These macroeconomic factors have led to decreased demand for non-essential and higher-priced goods, including recreational vehicles like UTVs, ATVs, and electric bikes. Retailers, in turn, have been cautious about placing orders for items that may not move as quickly due to these reduced consumer spending patterns. The combination of geopolitical and economic uncertainties has resulted in an environment where both consumers and retailers are hesitant to make significant purchasing decisions, leading to the sharp decline in sales of these products.
Previous report
Revenue from sales of Pontoon Boats decrease by $1.7 million, or 55.5%, from $3.1 million for the nine months ended September 30, 2024 to $1.4 million for the nine months ended September 30, 2025. The decrease was primarily driven by an industry-wide downturn caused by high interest rates and inflation, which have impacted the consumption of non-essential goods. In addition, high rejection rates from floorplan financing providers such as Northpoint have directly affected the inventory level that dealers can maintain, thereby reducing our sales in this category. This trend aligns with broader industry challenges. Ongoing economic uncertainty in the U.S. has further reduced discretionary spending on luxury boats, negatively affecting sales of high-end models such as our yacht.
Previous report
Gross profit
Previous report
Our gross profit decreased by $10.7 million, or 36.9%, from $28.9 million for the nine months ended September 30, 2024 to $18.2 million for the nine months ended September 30, 2025. Gross profit margin was 35.9% for the nine months ended September 30, 2025, compared with 31.7% in the same period last year. The decrease in gross margin was mainly due to an increase in freight absorbed in cost of sales.
Previous report
Cost of revenue on UTVs, ATVs and e-bikes decreased by $28.2 million, or 47.3%, from $59.6 million for the nine months ended September 30, 2024, to $31.4 million for the nine months ended September 30, 2025 and gross profit decreased by $10.4 million, or 36.7%, from $28.4million for the nine months ended September 30, 2024, to $18.0 million for the nine months ended September 30, 2025. Gross margin slightly increased by 4.1%, from 32.3% for the nine months ended September 30, 2024 to 36.4% for the nine months ended September 30, 2025. The decrease in the cost of revenue was primarily due to decreased product purchase cost, resulting from the decrease in sales volume. The increase in gross margin was primarily a result of selling some inventory at lower price at our seasonal promotions in the third quarter of fiscal 2024, while the unit sales price is higher in the same period of fiscal 2025.
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Reworded paragraphs (14)
Previous wording
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our financial statements and the related notes to those statements included elsewhere in this Report and with the audited financial statements and the related notes included in our Annual Report on Form 10-K/A for the fiscal year ended December 31, 2024 (“fiscal 2024”), as filed with the Securities and Exchange Commission (the “SEC”), on March 26, 2025 and as amended on May 20, 2025. In addition to historical financial information, the following discussion and analysis contains forward-looking statements that involve risks, uncertainties, and assumptions. Some of the numbers included herein have been rounded for the convenience of presentation. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors. See “Cautionary Note Regarding Forward-Looking Statements.”
Current wording
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and the related notes to those statements included elsewhere in this Quarterly Report on Form 10-Q and with the audited consolidated financial statements and the related notes included in our Annual Report on Form 10-K/A for the fiscal year ended December 31, 2025 (“fiscal 2025”), as filed with the Securities and Exchange Commission (the “SEC”). In addition to historical financial information, the following discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. Some of the numbers included herein have been rounded for the convenience of presentation. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors. See “Cautionary Note Regarding Forward-Looking Statements.”
Previous wording
Massimo Group is a holding company established on October 10, 2022 under the laws of the State of Nevada. We, through our subsidiaries, are primarily engaged in the manufacturing and sales of a wide selection of farm and ranch tested UTVs, recreational ATVs, and Pontoon Boats. Mr. David Shan, the Chairman of the Board and Chief Executive Officer, is the Controlling Shareholder of the Company.
Current wording
Massimo is a holding company established on October 10, 2022 under the laws of the State of Nevada. The Company, through its subsidiaries, is primarily engaged in the manufacturing and sales of a wide selection of farm and ranch tested UTVs, recreational ATVs, and Pontoon Boats. Mr. David Shan, the executive chairman of the Board and then Chief Executive Officer, is the controlling shareholder (the “Controlling Shareholder”) of the Company.
Previous wording
A Reorganization of the legal structure was completed on June 1, 2023. The Controlling Shareholder transferred his 100% equity interest in Massimo Motor and 100% equity interest in Massimo Marine to Massimo Group. After this Reorganization, we ultimately own 100% equity interests of Massimo Motor Sports and Massimo Marine.
Current wording
In advance of its IPO, a Reorganization of the Company’s legal structure was completed on June 1, 2023. At that time, the Controlling Shareholder transferred his 85% equity interest in Massimo Motor and 85% equity interest in Massimo Marine to Massimo. Together with 15% non-controlling interests which was also transferred to the Company, after the reorganization, Massimo owned 100% equity interests of Massimo Motor and Massimo Marine.
Previous wording
Before and after the Reorganization, we, together with our subsidiaries, are effectively controlled by the same Controlling Shareholder, and therefore, the Reorganization is considered as a recapitalization of entities under common control in accordance with ASC 805-50-25. The consolidation of the Company and our subsidiaries have been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become effective as of the beginning of the first period presented in the accompanying consolidated financial statements in accordance with ASC 805-50-45-5.
Current wording
Before and after the Reorganization, the Company, together with its subsidiaries, is effectively controlled by the same Controlling Shareholder, and therefore, the Reorganization is considered as a recapitalization of entities under common control in accordance with ASC 805-50-25. The consolidation of the Company and its subsidiaries have been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become effective as of the beginning of the first period presented in the accompanying condensed consolidated financial statements in accordance with ASC 805-50-45-5.
Previous wording
We currently generate most of our revenues from the sales of UTVs and ATVs, which represented 96.4% and 98.0% of total revenue for the three months ended September 30, 2025 and 2024, respectively. For the nine months ended September 30, 2025 and 2024, revenue from sales of UTVs and ATVs represented 97.2% and 96.5% of total revenue, respectively.
Current wording
We currently generate most of our revenues from the sales of UTVs and ATVs, which represented 97.1% and 96.8% of total revenue for the period ended March 31, 2026 and 2025, respectively.
Previous wording
We also generate revenue from the sales of Pontoon Boats, which represented 3.6% and 2.0% of our revenue for the three months ended September 30, 2025 and 2024, respectively. For the nine months ended September 30, 2025 and 2024, revenue from the sales of Pontoon Boats represented 2.8% and 3.5% of our revenue, respectively.
Current wording
We also generate revenue from the sales of Pontoon Boats, which represented 2.9% and 3.2% of our revenue for the period ended March 31, 2026 and 2025, respectively.
Previous wording
The following table summarizes the results of condensed consolidated statements of operations and comprehensive income (unaudited) for the three and nine months ended September 30, 2025 and 2024 in U.S. dollars, and provides information regarding the dollar and percentage increase or (decrease) during such periods.
Current wording
The following table summarizes the results of condensed consolidated statements of operations and comprehensive income for the three months ended March 31, 2026 and 2025 in U.S. dollars, and provides information regarding the dollar and percentage increase or (decrease) during such year.
Previous wording
Revenue from sales of UTVs, ATVs and e-bikes
Current wording
Total revenue decreased by $2.2 million, or 14.7%, from $14.9 million for the three months ended March 31, 2025 to $12.7 million for the three months ended March 31, 2026. The decrease was primarily driven by lower revenue from sales of UTVs, ATVs and e-bikes, and, to a lesser extent, lower revenue from sales of Pontoon Boats. The decrease was partially offset by the absence in the first quarter of 2026 of the $1.0 million reduction to revenue recorded in the first quarter of 2025 in connection with the repurchase of goods under a litigation settlement.
Previous wording
Our general and administrative expenses primarily include salaries and benefits, professional fees, office expenses, travel expenses, insurance expenses, rent expense and depreciation expenses. General and administrative expenses decreased from $12.1 million, for the nine months ended September 30, 2024, to $12.0 million for the nine months ended September 30, 2025. The increase was mainly due to increased salaries and benefit and rent expense, partly offset by a decrease in professional fees. Our general and administrative expenses represented 23.7% and 13.3% of our total revenue for the nine months ended September 30, 2025 and 2024, respectively.
Current wording
Our general and administrative expenses primarily include salaries and benefits, professional fees, office expenses, travel expenses, insurance expenses and depreciation expenses. General and administrative expenses remained relatively stable at $4.2 million for both the three months ended March 31, 2026 and 2025, with a slight increase of $1,239. Our general and administrative expenses represented 33.2% and 28.3% of our total revenue for the three months ended March 31, 2026 and 2025, respectively. The increase as a percentage of total revenue was mainly due to the decrease in revenue during the first quarter of fiscal 2026.
Previous wording
Provision for income taxes
Current wording
(Recovery of) Provision for income taxes
Previous wording
As of September 30, 2025, we had cash and cash equivalents of approximately $2.6 million. Our current assets were approximately $34.5 million, including approximately $5.3 million accounts receivable, approximately $25.1 million inventory, approximately $0.3 million advance to suppliers and approximately $1.2 million prepayment deposit and other receivables, and our current liabilities were approximately $16.7 million, including $4.7 million accounts payable to suppliers, $6.1 million other payable, accrued expenses and other current liabilities, $0.4 million contract liabilities, $1.1 million income tax payable, $2.1 million loan from a related party and $2.1 million liabilities from obligations under operating and financing leases, which resulted in a positive working capital of $17.8 million.
Current wording
As of March 31, 2026, we had cash and cash equivalents of approximately $4.1 million. Our current assets were approximately $32.9 million, including approximately $4.1 million of cash and cash equivalents, approximately $4.1 million of accounts receivable, approximately $23.9 million of inventory, approximately $0.2 million of advances to suppliers and approximately $0.5 million of prepaid and other current assets. Our current liabilities were approximately $16.6 million, including approximately $2.3 million of accounts payable, approximately $6.2 million of other payable, accrued expenses and other current liabilities, approximately $0.5 million of contract liabilities, approximately $3.5 million of income tax payable, approximately $2.0 million of loan from a related party, approximately $1.9 million of current portion of obligations under operating leases and approximately $0.1 million of other current liabilities, including return liabilities, warranty liabilities and current portion of obligations under financing leases. As a result, we had positive working capital of approximately $16.3 million as of March 31, 2026.
Previous wording
Our primary source of cash is currently generated from our business and bank borrowings. In the coming years, we will be looking to other sources, such as raising additional capital by issuing shares of stock, to meet our cash needs. While facing uncertainties regarding the size and timing of capital raise, we are confident that we can continue to meet operational needs solely by utilizing cash flows generated from our operating activities.
Current wording
Our primary source of cash is currently generated from our business. In the coming years, we will be looking to other sources, such as raising additional capital by issuing shares of stock, to meet our cash needs. While facing uncertainties regarding the size and timing of any future capital raise, we are confident that we can continue to organically support our operational needs solely by utilizing cash flows generated from our operating activities for the next 12 months.
Previous wording
Our capital expenditures consist primarily of expenditures for the purchase of fixed assets and equipment leases as a result of our business growth. Our capital expenditures amounted to $65,361 and $424,164 for the nine months ended September 30, 2025 and 2024, respectively.
Current wording
Our capital expenditure consists primarily of the purchase of fixed assets and equipment as a result of our business growth. Our capital expenditure amounted to approximately $262,425 and nil for the first quarter of fiscal 2026 and 2025, respectively.
Previous wording
There was no off-balance sheet arrangements for the nine months ended September 30, 2025 and 2024, that have, or that in the opinion of management are likely to have, a current or future material effect on our financial condition or results of operations.
Current wording
There was no off-balance sheet arrangements for the three months ended March 31, 2026 and 2025, that have, or that in the opinion of management are likely to have, a current or future material effect on our financial condition or results of operations.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
For the Three Months Ended March 31, 2026 and 2025
Current report — wording carried from elsewhere
For the Three Months ended March 31, 2026 and 2025
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Revenue from sales of Pontoon Boats
Previous report — wording carried elsewhere
Our cost and gross profit by revenue types are as follows: