Impact of the Big Beautiful Bill on Tax and Depreciation Benefits
The company expects an additional $10-15 million in tax shields due to accelerated depreciation from the new legislation.
This tax benefit could translate into $2-3 million in increased cash flow starting in 2026.
The legislation also increases the reportable limit of slot winnings, which could significantly benefit the tavern segment in terms of transaction volume.
Strategic Sale of Jack Wolfskin and Financial Flexibility
The company completed the sale of Jack Wolfskin earlier than expected, resulting in approximately $15 million less revenue year-over-year but $7 million higher adjusted EBITDA due to avoided seasonal losses.
The sale enhances financial flexibility and aligns with the strategic focus on core businesses, supporting the planned separation of Topgolf.
The sale's seasonality caused a significant impact on the second half EBITDA, with the business incurring seasonal losses in the first five months of 2025.
The sale reduced revenue by about $265 million and adjusted EBITDA by $26 million for the full year, with the proceeds strengthening liquidity and reducing net debt.
For Q3, the company expects 4-6% revenue growth and 19-21% adjusted EBITDA margin, with specific growth expectations for Viator, Tripadvisor, and TheFork.
Viator anticipates high single-digit revenue growth and a 16-18% EBITDA margin, with bookings improving sequentially in July.
The company remains confident about revenue reacceleration in Q4 despite tough comps, driven by healthy booking trends and ongoing product enhancements.
EPS grew 24.1% to $5.45 per diluted share, driven by higher gross margins and lower share count, partially offset by lower volumes and increased brand investments.
First half 2025 revenue grew 3.6%, gross margin was 49.1%, and EPS was $7.58, with shipments ahead of depletions.
Gross margin expanded by 380 basis points to 49.8%, benefiting from brewery efficiencies, procurement savings, price increases, and product mix, partially offset by inflation and tariffs.
In Q2 2025, depletions decreased 5% and shipments decreased 0.8% year-over-year, driven by declines in Truly Hard Seltzer and Sam Adams partially offset by growth in Sun Cruiser and Dogfish Head.
Operating cash flow exceeded $125 million in the first half, enabling $111 million in cash returns to shareholders year-to-date.
Revenue increased 1.5% due to pricing and favorable product mix despite lower volumes.
Adjusted EBITDA increased by 21% to $87 million, with a margin expansion of 190 basis points to 18%.
Adjusted free cash flow for the quarter was $87 million, representing a 100% conversion rate, with a trailing 12-month conversion rate of 91% versus 66% in 2024.
Finance segment average managed receivables increased 4% to $2.3 billion, with adjusted EBITDA up 9% to $42 million.
Loan loss provision remained stable at 1.5%, 60 basis points lower than the prior year.
Marketplace adjusted EBITDA grew 36% to $45 million, with margin expansion of 220 basis points to 12%.
Marketplace segment revenue grew with a 10% increase in GMV to $7.5 billion, driven by 32% growth in dealer GMV and flat commercial GMV.
OPENLANE reported consolidated revenues of $482 million in Q2 2025, representing 9% year-over-year growth.
Share repurchases totaled approximately 1.3 million shares for $31 million under an increased program through 2026.
The company used $210 million of cash to pay off senior notes, resulting in a net debt position of zero at quarter-end.
Dafinchi
