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MasterCraft Boat Holdings (1SG) Risk Analysis

Public companies are required to disclose risks that can affect the business and impact the stock. These disclosures are known as “Risk Factors”. Companies disclose these risks in their yearly (Form 10-K), quarterly earnings (Form 10-Q), or “foreign private issuer” reports (Form 20-F). Risk factors show the challenges a company faces. Investors can consider the worst-case scenarios before making an investment. TipRanks’ Risk Analysis categorizes risks based on proprietary classification algorithms and machine learning. MasterCraft Boat Holdings disclosed 38 risk factors in its most recent earnings report. MasterCraft Boat Holdings reported the most risks in the “Finance & Corporate” category.

Risk Overview Q2, 2026

Source: the company's latest filing for the period ended Jun 30, 2026, filed Sep 10, 2026

Risk Distribution
38Risks
Sector Avg.Finance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Risk Change Over Time

MasterCraft Boat Holdings disclosed risks per quarterNo. of Risks373839404142Q3Q4Q12023Q2Q3Q4Q12024Q2Q3Q4Q12025Q2Q4Q12026Q2Showing: Q2, 2026
Risks removedRisks addedRisks changedMasterCraft Boat Holdings Risk Factors
Risk Changed (4)
  • Share Price & Shareholder Rights - Risk 1
    LOR, Inc. and its affiliates beneficially own approximately 20% of our outstanding common stock and have contractual rights to nominate directors to our Board, which may limit the ability of other stockholders to influence corporate matters.

    In connection with the Marine Products Transaction, we entered into a Stockholders Agreement (the "Stockholders Agreement") with LOR, Inc. and certain affiliated persons (the "Specified Stockholders"), pursuant to which the Specified Stockholders have the right to nominate up to two directors to our Board for so long as they beneficially own at least 15% of the total voting power of our outstanding common stock, and one director while they own at least 10% but less than 15%. Timothy C. Rollins and Callum C. Macgregor currently serve as the Specified Stockholders' director designees. The Specified Stockholders' interests may not always be aligned with those of our other stockholders, and their significant ownership position and board representation may enable them to exert substantial influence over matters submitted to a vote of stockholders, including the election of directors and approval of significant corporate transactions. In addition, we entered into a Registration Rights Agreement (the "Registration Rights Agreement") with LOR, Inc. that provides demand and piggyback registration rights for the resale of shares held by the Specified Stockholders. When transfer restrictions expire and the resale shelf registration statement becomes effective, sales of a substantial number of shares by the Specified Stockholders could adversely affect the market price of our common stock.

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Ability to Sell (1)

Risk Highlights Q2, 2026

Main Risk Category
Finance & Corporate
With 11 Risks
Number of Disclosed Risks
38
No changes from last report
S&P 500 Average: 32
Recent Changes
2Risks added
2Risks removed
4Risks changed
Since Jun 2026
Number of Risk Changed
4
+4
From last report
S&P 500 Average: 1

Risk Word Cloud

shareholders may be diluted by future issuances of common stock in connection with our incentive plans, acquisitions, or otherwise; future sales of such shares in the public market, or the expectations that such sales may occur, could lower our stock price.future issuances of common stockour intellectual property rights may be inadequate to protect our business.inadequate to protect our businessour credit facilities contain covenants which may limit our operating flexibility; failure to comply with covenants may result in our lenders restricting or terminating our ability to borrow under such credit facilities.terminating our ability to borrowour business and operations are dependent on the expertise of our key contributors, our successful implementation of succession plans, and our ability to attract and retain management employees and skilled labor.expertise of our key contributorswe manufacture and sell products that create exposure to potential claims and litigation.create exposure to potential claimswe depend on our network of independent dealers, and our financial results could be adversely affected if we are unable to maintain effective distribution.unable to maintain effective distributionlor, inc. and its affiliates beneficially own approximately 20% of our outstanding common stock and have contractual rights to nominate directors to our board, which may limit the ability of other stockholders to influence corporate matters.stockholders to influence corporate mattersan inability to identify and complete targeted acquisitions, as well as an inability to timely and successfully integrate completed acquisitions, such as the marine products transaction, could negatively impact financial results and/or adversely affect our internal controls.adversely affect our internal controlsour financial results may be adversely affected by our third-party suppliers' increased costs, inability to adjust for our required production levels due to changes in demand or global supply chain disruptions, or our inability to maintain relationship with new suppliers.our inability to maintain relationshipour success depends on the continued strength of our brands and the value of our brands, and sales of our products could be diminished if we, the athletes who use our products, or the sports and activities in which our products are used are associated with negative publicity.continued strength of our brands

Risk Factors Full Breakdown - Total Risks 38

Share Price & Shareholder Rights2 | 5.3%
  • Share Price & Shareholder Rights - Risk 1Added
    LOR, Inc. and its affiliates beneficially own approximately 20% of our outstanding common stock and have contractual rights to nominate directors to our Board, which may limit the ability of other stockholders to influence corporate matters.

    In connection with the Marine Products Transaction, we entered into a Stockholders Agreement (the "Stockholders Agreement") with LOR, Inc. and certain affiliated persons (the "Specified Stockholders"), pursuant to which the Specified Stockholders have the right to nominate up to two directors to our Board for so long as they beneficially own at least 15% of the total voting power of our outstanding common stock, and one director while they own at least 10% but less than 15%. Timothy C. Rollins and Callum C. Macgregor currently serve as the Specified Stockholders' director designees. The Specified Stockholders' interests may not always be aligned with those of our other stockholders, and their significant ownership position and board representation may enable them to exert substantial influence over matters submitted to a vote of stockholders, including the election of directors and approval of significant corporate transactions. In addition, we entered into a Registration Rights Agreement (the "Registration Rights Agreement") with LOR, Inc. that provides demand and piggyback registration rights for the resale of shares held by the Specified Stockholders. When transfer restrictions expire and the resale shelf registration statement becomes effective, sales of a substantial number of shares by the Specified Stockholders could adversely affect the market price of our common stock.

  • Share Price & Shareholder Rights - Risk 2
    Shareholders may be diluted by future issuances of common stock in connection with our incentive plans, acquisitions, or otherwise; future sales of such shares in the public market, or the expectations that such sales may occur, could lower our stock price.

    Our amended and restated certificate of incorporation authorizes us to issue shares of common stock and options, rights, warrants, and appreciation rights relating to common stock for the consideration and on the terms and conditions established by our Board in its sole discretion, whether in connection with acquisitions or otherwise. For example, we issued a substantial number of shares of our common stock as consideration in connection with the Marine Products Transaction, which diluted the beneficial ownership of the holders of our common stock. Any common stock that we issue in the future, including under our Second Amended and Restated MasterCraft 2015 Incentive Award Plan or other equity incentive plans that we may adopt in the future, would further dilute the percentage ownership of holders of our common stock and subsequent resales could adversely affect our stock price. Additionally, the parties to the Registration Rights Agreement, have certain registration rights with respect to our common stock. If such parties exercise their registration rights, the market price of our common stock could drop if the holders of these shares sell them or are perceived by the market as intending to sell. These factors could also make it more difficult for us to raise additional funds through future offerings of our common stock or other securities.

Accounting & Financial Operations2 | 5.3%
Debt & Financing4 | 10.5%
Corporate Activity and Growth3 | 7.9%

See a full breakdown of risk according to category and subcategory. The list starts with the category with the most risk. Click on subcategories to read relevant extracts from the most recent report.

FAQ

What are “Risk Factors”?
Risk factors are any situations or occurrences that could make investing in a company risky. The Securities and Exchange Commission (SEC) requires that publicly traded companies disclose their most significant risk factors. This is so that potential investors can consider any risks before they make an investment. They also offer companies protection, as a company can use risk factors as liability protection. This could happen if a company underperforms and investors take legal action as a result. It is worth noting that smaller companies, that is those with a public float of under $75 million on the last business day, do not have to include risk factors in their 10-K and 10-Q forms, although some may choose to do so.
How do companies disclose their risk factors?
Publicly traded companies initially disclose their risk factors to the SEC through their S-1 filings as part of the IPO process. Additionally, companies must provide a complete list of risk factors in their Annual Reports (Form 10-K) or (Form 20-F) for “foreign private issuers”. Quarterly Reports also include a section on risk factors (Form 10-Q) where companies are only required to update any changes since the previous report. According to the SEC, risk factors should be reported concisely, logically and in “plain English” so investors can understand them.
How can I use TipRanks risk factors in my stock research?
Use the Risk Factors tab to get data about the risk factors of any company in which you are considering investing. You can easily see the most significant risks a company is facing. Additionally, you can find out which risk factors a company has added, removed or adjusted since its previous disclosure. You can also see how a company’s risk factors compare to others in its sector. Without reading company reports or participating in conference calls, you would most likely not have access to this sort of information, which is usually not included in press releases or other public announcements. A simplified analysis of risk factors is unique to TipRanks.
What are all the risk factor categories?
TipRanks has identified 6 major categories of risk factors and a number of subcategories for each. You can see how these categories are broken down in the list below. 1. Financial & Corporate Accounting & Financial Operations - risks related to accounting loss, value of intangible assets, financial statements, value of intangible assets, financial reporting, estimates, guidance, company profitability, dividends, fluctuating results. Share Price & Shareholder Rights – risks related to things that impact share prices and the rights of shareholders, including analyst ratings, major shareholder activity, trade volatility, liquidity of shares, anti-takeover provisions, international listing, dual listing. Debt & Financing – risks related to debt, funding, financing and interest rates, financial investments. Corporate Activity and Growth – risks related to restructuring, M&As, joint ventures, execution of corporate strategy, strategic alliances. 2. Legal & Regulatory Litigation and Legal Liabilities – risks related to litigation/ lawsuits against the company. Regulation – risks related to compliance, GDPR, and new legislation. Environmental / Social – risks related to environmental regulation and to data privacy. Taxation & Government Incentives – risks related to taxation and changes in government incentives. 3. Production Costs – risks related to costs of production including commodity prices, future contracts, inventory. Supply Chain – risks related to the company’s suppliers. Manufacturing – risks related to the company’s manufacturing process including product quality and product recalls. Human Capital – risks related to recruitment, training and retention of key employees, employee relationships & unions labor disputes, pension, and post retirement benefits, medical, health and welfare benefits, employee misconduct, employee litigation. 4. Technology & Innovation Innovation / R&D – risks related to innovation and new product development. Technology – risks related to the company’s reliance on technology. Cyber Security – risks related to securing the company’s digital assets and from cyber attacks. Trade Secrets & Patents – risks related to the company’s ability to protect its intellectual property and to infringement claims against the company as well as piracy and unlicensed copying. 5. Ability to Sell Demand – risks related to the demand of the company’s goods and services including seasonality, reliance on key customers. Competition – risks related to the company’s competition including substitutes. Sales & Marketing – risks related to sales, marketing, and distribution channels, pricing, and market penetration. Brand & Reputation – risks related to the company’s brand and reputation. 6. Macro & Political Economy & Political Environment – risks related to changes in economic and political conditions. Natural and Human Disruptions – risks related to catastrophes, floods, storms, terror, earthquakes, coronavirus pandemic/COVID-19. International Operations – risks related to the global nature of the company. Capital Markets – risks related to exchange rates and trade, cryptocurrency.