Massimo Group SEC 10-Q Report
Massimo Group, a leading manufacturer in the powersports and recreational vehicle industry, has released its Form 10-Q report for the third quarter of 2025. The report highlights significant improvements in both financial and operational performance, showcasing the company's resilience and strategic initiatives in a competitive market.
Financial Highlights
Revenues: The company reported revenues of $16.99 million, reflecting a decrease of 33.6% compared to the same period in 2024. This decline was attributed to a temporary drop in sales volume following a modest price increase.
Gross Profit: Gross profit increased by 2.6% from the previous year, reaching $7.13 million. This growth was driven by higher sales prices and enhanced cost control measures.
Income from Operations: Income from operations saw a significant rise, amounting to $1.79 million, a 489.3% increase from the prior year. This indicates improved operational efficiency.
Net Income and Comprehensive Income: The company achieved a net income of $1.53 million, compared to a net loss of $2.50 million in the same period last year, highlighting a strong recovery in profitability.
Earnings per Share – basic: Earnings per share were $0.04, compared to a loss of $0.06 per share in the previous year, reflecting improved earnings performance.
Business Highlights
Revenue Segments: The company generates most of its revenue from the sales of UTVs and ATVs, which accounted for 96.4% of total revenue for the three months ended September 30, 2025. For the nine months ended September 30, 2025, revenue from UTVs and ATVs represented 97.2% of total revenue. Sales of Pontoon Boats contributed 3.6% to the total revenue for the three months ended September 30, 2025, and 2.8% for the nine months ended September 30, 2025.
Sales Units: The company experienced a steady upward trend in gross profit from $4.2 million in Q1 to $6.9 million in Q2, reaching $7.1 million in Q3 of 2025, driven by higher sales prices and enhanced cost control measures.
New Production Launches: On October 22, 2025, the company announced a strategic partnership with a supplier in Vietnam to enhance production flexibility and expand capacity for its electric vehicles, including the new 2026 MVR Golf Cart and MVR Cargo Max Electric Utility Cart.
Future Outlook: The company plans to include Bitcoin as part of its long-term treasury reserve strategy, with acquisitions funded using current operating cash flow.
Operational Performance: The company transitioned from a net loss of $2.1 million in Q1 to a net income of $0.07 million in Q2, with profitability strengthening further to a net profit of $1.5 million in Q3 of 2025.
Trends and Key Factors: The company is facing intense competition in the powersports vehicles and boats industry, with significant pricing pressure that may affect profit margins. Economic and policy changes within China, including potential government interference and trade barriers, pose risks to the company's supply chain and operations. The company is dependent on a limited number of suppliers for its products, with 82% of purchases from two suppliers, highlighting a risk of supply chain disruption. Inflation and recent US tariff policies have increased costs for China-based suppliers, potentially impacting the company's profitability.
SEC Filing: Massimo Group [ MAMO ] - 10-Q - Nov. 07, 2025