OneWater Marine (ONEW) 10-Q 8 May 23 2023 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Mar. 31, 2023	Apr. 25, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-39213
Entity Registrant Name	OneWater Marine Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	83-4330138
Entity Address, Address Line One	6275 Lanier Islands Parkway
Entity Address, City or Town	Buford
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30518
City Area Code	678
Local Phone Number	541-6300
Title of 12(b) Security	Class A common stock, par value $0.01 per share
Trading Symbol	ONEW
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001772921
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false
Class A Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		14,316,518
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		1,429,940

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2023	Sep. 30, 2022
CURRENT ASSETS:
Cash	$ 60,976	$ 42,071
Restricted cash	10,707	18,876
Accounts receivable, net	81,040	57,960
Inventories, net	593,347	372,959
Prepaid expenses and other current assets	64,123	75,024
Total current assets	810,193	566,890
Property and equipment, net	117,326	109,713
Operating lease right-of-use assets	124,864	123,955
Other long-term assets	4,908	3,378
Deferred tax assets, net	6,980	8,433
Intangible assets, net	308,711	306,471
Goodwill	397,469	378,588
Total assets	1,770,451	1,497,428
CURRENT LIABILITIES:
Accounts payable	33,450	27,306
Other payables and accrued expenses	56,868	55,237
Customer deposits	59,020	65,460
Notes payable – floor plan	485,399	267,108
Current portion of operating lease liabilities	13,641	12,981
Current portion of long-term debt, net	23,919	21,642
Current portion of tax receivable agreement liability	2,363	2,363
Total current liabilities	674,660	452,097
Other long-term liabilities	13,585	23,174
Tax receivable agreement liability	43,991	43,991
Long-term operating lease liabilities	112,582	112,127
Long-term debt, net	439,256	421,162
Total liabilities	1,284,074	1,052,551
STOCKHOLDERS’ EQUITY
Preferred stock, $0.01 par value, 1,000,000 shares authorized, none issued and outstanding as of March 31, 2023 and September 30, 2022	0	0
Additional paid-in capital	184,520	180,296
Retained earnings	235,754	204,880
Accumulated other comprehensive income (loss)	10	(7)
Total stockholders’ equity attributable to OneWater Marine Inc.	420,441	385,325
Equity attributable to non-controlling interests	65,936	59,552
Total stockholders’ equity	486,377	444,877
Total liabilities and stockholders’ equity	1,770,451	1,497,428
Class A Common Stock
STOCKHOLDERS’ EQUITY
Common stock value	143	142
Class B Common Stock
STOCKHOLDERS’ EQUITY
Common stock value	$ 14	$ 14

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2023	Sep. 30, 2022
Preferred stock, par or stated value per share (in usd per shares)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Class A Common Stock
Common stock, par or stated value per share (in usd per shares)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	40,000,000	40,000,000
Common stock, shares, issued (in shares)	14,304,518	14,211,621
Common stock, shares, outstanding (in shares)	14,304,518	14,211,621
Class B Common Stock
Common stock, par or stated value per share (in usd per shares)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	10,000,000	10,000,000
Common stock, shares, issued (in shares)	1,429,940	1,429,940
Common stock, shares, outstanding (in shares)	1,429,940	1,429,940

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Revenues:
Total revenues	$ 524,331	$ 442,127	$ 890,990	$ 778,399
Cost of sales (exclusive of depreciation and amortization shown separately below):
Total cost of sales	377,634	299,585	634,305	534,892
Selling, general and administrative expenses	90,193	75,492	168,031	134,588
Depreciation and amortization	5,637	4,727	11,330	6,476
Transaction costs	241	776	1,571	3,821
Change in fair value of contingent consideration	1,736	2,158	327	7,904
Income from operations	48,890	59,389	75,426	90,718
Other expense (income):
Interest expense – floor plan	5,472	1,048	10,251	1,925
Interest expense – other	8,604	3,097	16,188	4,626
Other (income) expense, net	(187)	109	(826)	657
Total other expense, net	13,889	4,254	25,613	7,208
Income before income tax expense	35,001	55,135	49,813	83,510
Income tax expense	7,964	12,781	11,348	17,670
Net income	27,037	42,354	38,465	65,840
Less: Net income attributable to non-controlling interests	(1,165)	(1,011)	(2,530)	(1,011)
Less: Net income attributable to non-controlling interests of One Water Marine Holdings, LLC	(3,068)	(5,046)	(4,231)	(8,513)
Net income attributable to OneWater Marine Inc.	22,804	36,297	31,704	56,316
New boat
Revenues:
Total revenues	355,284	290,020	587,689	526,218
Cost of sales (exclusive of depreciation and amortization shown separately below):
Total cost of sales	275,026	208,606	450,284	384,502
Pre-owned boat
Revenues:
Total revenues	75,394	75,854	131,172	129,303
Cost of sales (exclusive of depreciation and amortization shown separately below):
Total cost of sales	58,180	55,959	98,484	95,329
Finance & insurance income
Revenues:
Total revenues	15,324	14,948	24,258	24,255
Service, parts & other
Revenues:
Total revenues	78,329	61,305	147,871	98,623
Cost of sales (exclusive of depreciation and amortization shown separately below):
Total cost of sales	$ 44,428	$ 35,020	$ 85,537	$ 55,061
Class A Common Stock
Other expense (income):
Earnings per share, basic (in dollars per share)	$ 1.59	$ 2.62	$ 2.21	$ 4.14
Earnings per share, diluted (in dollars per share)	$ 1.56	$ 2.54	$ 2.17	$ 4.02
Weighted-average number of shares used to compute net loss per share, basic (in shares)	14,340	13,864	14,318	13,619
Weighted-average number of shares used to compute net loss per share, diluted (in shares)	14,655	14,272	14,612	14,017

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 27,037	$ 42,354	$ 38,465	$ 65,840
Other comprehensive income:
Foreign currency translation adjustment	8	0	19	0
Comprehensive income	27,045	42,354	38,484	65,840
Less: Net income attributable to non-controlling interests	(1,165)	(1,011)	(2,530)	(1,011)
Less: Net income attributable to non-controlling interests of One Water Marine Holdings, LLC	(3,068)	(5,046)	(4,231)	(8,513)
Foreign currency translation adjustment attributable to non-controlling interest of One Water Marine Holdings, LLC	(1)	0	(2)	0
Comprehensive income attributable to One Water Marine Holdings, Inc.	$ 22,811	$ 36,297	$ 31,721	$ 56,316

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Class A Common Stock	Common Stock Class A Common Stock	Common Stock Class B Common Stock	Additional Paid-in Capital	Retained Earnings	Non-controlling Interest	Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Sep. 30, 2021			13,277,000	1,819,000
Beginning balance at Sep. 30, 2021	$ 254,833		$ 133	$ 18	$ 150,825	$ 74,952	$ 28,905	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	23,486					20,019	3,467
Distributions to members	(619)					(442)	(177)
Non-controlling interest in subsidiary	19,311						19,311
Exchange of B shares for A shares (in shares)			389,000	(389,000)
Exchange of B shares for A shares	0		$ 4	$ (4)	7,405		(7,405)
Establishment of liabilities under tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis	(283)				(283)
Shares issued upon vesting of equity-based awards, net of tax withholding (in shares)			53,000
Shares issued upon vesting of equity-based awards, net of tax withholding	(468)		$ 1		(469)
Shares issued in connection with a business combination (in shares)			133,000
Shares issued in connection with a business combination	6,834		$ 1		6,833
Equity-based compensation	2,100				2,100
Ending balance (in shares) at Dec. 31, 2021			13,852,000	1,430,000
Ending balance at Dec. 31, 2021	305,194		$ 139	$ 14	166,411	94,529	44,101	0
Beginning balance (in shares) at Sep. 30, 2021			13,277,000	1,819,000
Beginning balance at Sep. 30, 2021	254,833		$ 133	$ 18	150,825	74,952	28,905	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	65,840
Currency translation adjustment	0
Ending balance (in shares) at Mar. 31, 2022			13,879,000	1,430,000
Ending balance at Mar. 31, 2022	348,935		$ 139	$ 14	168,095	130,560	50,127	0
Beginning balance (in shares) at Dec. 31, 2021			13,852,000	1,430,000
Beginning balance at Dec. 31, 2021	305,194		$ 139	$ 14	166,411	94,529	44,101	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	42,354					36,297	6,057
Distributions to members	(871)					(266)	(605)
Exchange of B shares for A shares	0				(574)		574
Shares issued upon vesting of equity-based awards, net of tax withholding (in shares)			27,000
Shares issued upon vesting of equity-based awards, net of tax withholding	(455)				(455)
Equity-based compensation	2,713				2,713
Currency translation adjustment	0
Ending balance (in shares) at Mar. 31, 2022			13,879,000	1,430,000
Ending balance at Mar. 31, 2022	348,935		$ 139	$ 14	168,095	130,560	50,127	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Repurchase and Retirement of Treasury (in shares)		(73,487)
Repurchase and Retirement of Treasury		$ (1,900)
Ending balance (in shares) at Mar. 31, 2023			14,306,000	1,430,000
Ending balance at Mar. 31, 2023	486,377		$ 143	$ 14	184,520	235,754	65,936	10
Beginning balance (in shares) at Sep. 30, 2022			14,212,000	1,430,000
Beginning balance at Sep. 30, 2022	444,877		$ 142	$ 14	180,296	204,880	59,552	(7)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	11,428					8,900	2,528
Distributions to members	(319)					(10)	(309)
Shares issued upon vesting of equity-based awards, net of tax withholding (in shares)			86,000
Shares issued upon vesting of equity-based awards, net of tax withholding	(754)		$ 1		(755)
Equity-based compensation	2,572				2,572
Currency translation adjustment	11						1	10
Ending balance (in shares) at Dec. 31, 2022			14,298,000	1,430,000
Ending balance at Dec. 31, 2022	457,815		$ 143	$ 14	182,113	213,770	61,772	3
Beginning balance (in shares) at Sep. 30, 2022			14,212,000	1,430,000
Beginning balance at Sep. 30, 2022	444,877		$ 142	$ 14	180,296	204,880	59,552	(7)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	38,465
Repurchase and Retirement of Treasury (in shares)		(63,353)
Repurchase and Retirement of Treasury		$ (1,600)
Currency translation adjustment	19
Ending balance (in shares) at Mar. 31, 2023			14,306,000	1,430,000
Ending balance at Mar. 31, 2023	486,377		$ 143	$ 14	184,520	235,754	65,936	10
Beginning balance (in shares) at Dec. 31, 2022			14,298,000	1,430,000
Beginning balance at Dec. 31, 2022	457,815		$ 143	$ 14	182,113	213,770	61,772	3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	27,037					22,804	4,233
Distributions to members	(72)					(2)	(70)
Shares issued upon vesting of equity-based awards, net of tax withholding (in shares)			27,000
Shares issued upon vesting of equity-based awards, net of tax withholding	(386)				(386)
Shares issued as part of employee stock purchase plan (in shares)			44,000
Shares issued as part of employee stock purchase plan	1,063		$ 1		1,062
Repurchase and Retirement of Treasury (in shares)			(63,000)
Repurchase and Retirement of Treasury	(1,579)		$ (1)		(760)	(818)
Equity-based compensation	2,491				2,491
Currency translation adjustment	8						1	7
Ending balance (in shares) at Mar. 31, 2023			14,306,000	1,430,000
Ending balance at Mar. 31, 2023	$ 486,377		$ 143	$ 14	$ 184,520	$ 235,754	$ 65,936	$ 10

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 38,465	$ 65,840
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	12,542	6,541
Equity-based awards	5,063	4,813
Loss (gain) on asset disposals	210	(14)
Non-cash interest expense	3,077	626
Deferred income tax provision	1,453	3,463
Change in fair value of contingent consideration	327	7,904
Loss on equity investment	280	0
(Increase) decrease in assets:
Accounts receivable	(22,893)	(44,119)
Inventories	(214,150)	(113,879)
Prepaid expenses and other current assets	11,181	(14,189)
Other assets	(1,812)	(50)
Increase (decrease) in liabilities:
Accounts payable	5,726	26,363
Other payables and accrued expenses	(1,288)	4,810
Tax receivable agreement liability	0	313
Customer deposits	(7,440)	8,156
Net cash used in operating activities	(169,259)	(43,422)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment and construction in progress	(12,029)	(7,993)
Proceeds from disposal of property and equipment	287	22
Cash used for additions to intangible assets	(26)	0
Cash used in acquisitions, net of cash acquired	(28,611)	(288,894)
Net cash used in investing activities	(40,379)	(296,865)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings from floor plan	216,063	140,619
Proceeds from long-term debt	30,000	240,000
Payments on long-term debt	(11,874)	(13,842)
Payments of debt issuance costs	0	(4,053)
Payments of contingent consideration	(11,787)	(53)
Payments of tax withholdings for equity-based awards	(1,140)	(923)
Proceeds from issuance of Class A common stock as part of employee stock purchase plan	1,063	0
Distributions to members	(391)	(6,453)
Repurchase and retirement of Class A common stock	(1,579)	0
Net cash provided by financing activities	220,355	355,295
Effects of exchange rate changes on cash and restricted cash	19	0
Net change in cash	10,736	15,008
Cash and restricted cash at beginning of period	60,947	73,949
Cash and restricted cash at end of period	71,683	88,957
Supplemental cash flow disclosures:
Cash paid for interest	23,362	5,925
Cash paid for income taxes	13,388	6,310
Noncash items:
Acquisition purchase price funded by seller notes payable	0	1,126
Acquisition purchase price funded by contingent consideration	2,550	15,321
Accrued purchase consideration	0	0
Acquisition purchase price funded by issuance of Class A common stock	0	6,834
Purchase of property and equipment funded by long-term debt	1,053	529
Right-of-use assets obtained in exchange for new operating lease liabilities	7,978	36,174
Acquisition purchase price funded by affiliate financing	10,600	0
Settlement of affiliate financing with proceeds from sale and leaseback	$ 10,600	$ 0

Description of Company and Basi

Description of Company and Basis of Presentation	6 Months Ended
	Mar. 31, 2023
Description of Company and Basis of Presentation [Abstract]
Description of Company and Basis of Presentation	Description of Company and Basis of Presentation Description of the Business OneWater Marine Inc. (“OneWater Inc.”) was incorporated in Delaware on April 3, 2019 and was a wholly-owned subsidiary of One Water Marine Holdings, LLC (“OneWater LLC”). Pursuant to a reorganization on February 11, 2020 into a holding company structure for the purpose of facilitating an initial public offering (the “IPO”) and related transactions in order to carry on the business of OneWater LLC and its subsidiaries (together with OneWater Inc., the “Company”), OneWater Inc. is the holding company and its sole material asset is the equity interest in OneWater LLC. OneWater LLC was organized as a limited liability company under the law of the State of Delaware in 2014 and is the parent company of One Water Assets & Operations (“OWAO”), and its wholly-owned and majority-owned subsidiaries. The Company is one of the largest recreational boat retailers in the United States. The Company engages primarily in the retail sale, brokerage, and service of new and pre-owned boats, motors, trailers, marine parts and accessories, and offers slip and storage accommodations in certain locations. The Company also arranges related boat financing, insurance, and extended service contracts for customers with third-party lenders and insurance companies. As of March 31, 2023, the Company operated a total of 100 retail locations, 12 distribution centers/warehouses and multiple online marketplaces in 20 states, several of which are in the top twenty states for marine retail expenditures. Operating results are generally subject to seasonal variations. Demand for products is generally highest during the third and fourth quarters of the fiscal year and, accordingly, revenues are generally expected to be higher during these periods. General economic conditions and consumer spending patterns can negatively impact the Company’s operating results. Unfavorable local, regional, national, or global economic developments, global public health concerns, including the COVID-19 pandemic, or uncertainties could reduce consumer spending and adversely affect the Company’s business. Consumer spending on discretionary goods may also decline as a result of lower consumer confidence levels, even if prevailing economic conditions are otherwise favorable. Economic conditions in areas in which the Company operates stores, particularly in the Southeast, can have a major impact on the Company’s overall results of operations. Local influences such as corporate downsizing, inclement weather such as hurricanes and other storms, environmental conditions, and other events could adversely affect the Company’s operations in certain markets and in certain periods. Any extended period of adverse economic conditions or low consumer confidence is likely to have a negative effect on the Company’s business. Sales of new boats from the Company’s top ten brands represent approximately 41.6% and 43.8% of total sales for the six months ended March 31, 2023 and 2022, respectively, making them major suppliers of the Company. Of this amount, Malibu Boats, Inc., including its brands Malibu, Axis, Cobalt, Pursuit, Maverick, Hewes, Cobia and Pathfinder accounted for 14.2% and 15.1% of consolidated revenue for the six months ended March 31, 2023 and 2022, respectively. As is typical in the industry, the Company contracts with most manufacturers under renewable annual dealer agreements, each of which provides the right to sell various makes and models of boats within a given geographic region. Any change or termination of these agreements, or the agreements discussed above, for any reason, or changes in competitive, regulatory, or marketing practices, including rebate or incentive programs, could adversely affect results of operations. Pre-owned boats are usually trade-ins from retail customers who are purchasing a boat from the Company. Principles of Consolidation As the sole managing member of OneWater LLC, OneWater Inc. operates and controls all of the businesses and affairs of OneWater LLC. Through OneWater LLC and its wholly-owned subsidiaries, as well as majority-owned subsidiaries over which the Company exercises control, OneWater Inc. conducts its business. As a result, OneWater Inc. consolidates the financial results of OneWater LLC and its subsidiaries and reports non-controlling interests related to the portion of units of OneWater LLC (the “OneWater LLC Units”) not owned by OneWater Inc., which will reduce net income (loss) attributable to OneWater Inc.’s Class A stockholders. As of March 31, 2023, OneWater Inc. owned 90.9% of the economic interest of OneWater LLC. Commencing December 31, 2021, the Company owns 80% of the economic interest of Quality Assets and Operations, over which the Company exercises control and the minority interest in this subsidiary has been recorded accordingly. See Note 4 for additional information regarding the acquisition. Basis of Financial Statement Preparation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements, which do not include all the information and notes required by such accounting principles for annual financial statements. The unaudited condensed consolidated financial statements should be read in conjunction with OneWater Inc.’s Annual Report on Form 10-K for the year ended September 30, 2022. All adjustments, consisting of only normal recurring adjustments considered necessary for fair presentation, have been reflected in these unaudited condensed consolidated financial statements.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Cash At times the amount of cash on deposit may exceed the federally insured limit of the bank. Deposit accounts at each of the institutions are insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC). At March 31, 2023 and September 30, 2022, the Company exceeded FDIC limits at various institutions. The Company has not experienced any losses in such accounts and believes there is little to no exposure to any significant credit risk. Restricted Cash Restricted cash relates to amounts collected for pre-owned sales, in certain states, which are held in escrow on behalf of the respective buyers and sellers for future purchases of boats. Total customer deposits are shown as a liability on the consolidated balance sheets. These liabilities may be more than the applicable restricted cash balances and fluctuate due to timing differences and because in certain states the deposits are not restricted from use. Inventories Inventories are stated at the lower of cost or net realizable value. The cost of the new and pre-owned boat inventory is determined using the specific identification method. In assessing lower of cost or net realizable value the Company considers the aging of the boats, historical sales of a brand and current market conditions. The cost of acquired, manufactured and assembled parts and accessories is determined using methods which vary by subsidiary and include both the average cost method and first-in, first-out (“FIFO”). Goodwill and Other Identifiable Intangible Assets Goodwill and intangible assets are accounted for in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350, ‘‘Intangibles - Goodwill and Other’’ (‘‘ASC 350’’), which provides that the excess of cost over the fair value of the net assets of businesses acquired, including other identifiable intangible assets, is recorded as goodwill. Goodwill is an asset representing operational synergies and future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. In accordance with ASC 350, Goodwill is tested for impairment at least annually, or more frequently when events or circumstances indicate that impairment might have occurred. ASC 350 also states that if an entity determines, based on an assessment of certain qualitative factors, that it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then a quantitative goodwill impairment test is unnecessary. Identifiable intangible assets primarily consist of trade names, developed technologies, including design libraries, and customer relationships related to the acquisitions the Company has completed. The Company has determined that trade names have an indefinite life, as there are no economic, contractual or other factors that limit their useful lives and they are expected to generate value as long as the trade name is utilized by the Company, and therefore, are not subject to amortization. Developed technologies and customer relationships are amortized over their estimated useful lives of ten years and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Financial statement risk exists to the extent identifiable intangibles become impaired due to the decrease in the fair value of the identifiable assets. Sales Tax The Company collects sales tax on all of the Company’s sales to nonexempt customers and remits the entire amount to the states that imposed the sales tax on and concurrent with specific sales transactions. The Company’s accounting policy is to exclude the tax collected and remitted to the states from revenues and cost of sales. Revenue Recognition Revenue is recognized from the sale of products and commissions earned on new and pre-owned boats (including used, brokerage, consignment and wholesale) when ownership is transferred to the customer, which is generally upon acceptance or delivery to the customer. At the time of acceptance or delivery, the customer is able to direct the use of, and obtain substantially all of the benefits at such time. We are the principal with respect to revenue from new, pre-owned and consignment sales and such revenue is recorded at the gross sales price. With respect to brokerage transactions, we are acting as an agent in the transaction, therefore the fee or commission is recorded on a net basis. Revenue from parts and accessories sold directly to a customer (not on a repair order) is recognized when control of the item is transferred to the customer, which is typically upon shipment. Revenue from parts and service operations (boat maintenance and repairs) are recorded over time as services are performed. Satisfaction of this performance obligation creates an asset with no alternative use for which an enforceable right to payment for performance to date exists within our contractual agreements. Each boat maintenance and repair service is a single performance obligation that includes both the parts and labor associated with the service. Payment for boat maintenance and repairs is typically due upon the completion of the service, which is generally completed within a period of one year or less from contract inception. The Company recorded contract assets in prepaid expenses and other current assets of $4.3 million and $3.7 million as of March 31, 2023 and September 30, 2022. Certain parts and service transactions require the Company to perform shipping and handling activities after the transfer of control to the customer (e.g., when control transfers prior to delivery). They are considered fulfillment activities and are included in selling, general and administrative expenses. Revenue from storage and marina operations is recognized on a straight-line basis over the term of the contract as services are completed. Revenue from arranging financing, insurance and extended warranty contracts to customers through various third-party financial institutions and insurance companies is recognized when the related boats are sold. We do not directly finance our customers’ boat, motor or trailer purchases. We are acting as an agent in the transaction, therefore the commission is recorded on a net basis. Subject to our agreements and in the event of early cancellation, prepayment or default of such loans or insurance contracts by the customer, we may be assessed a chargeback for a portion of the commission paid by the third-party financial institutions and insurance companies. We reserve for these chargebacks based on our historical experience with repayments or defaults. Chargebacks were not material to the unaudited condensed consolidated financial statements for the three and six months ended March 31, 2023 and March 31, 2022. Contract liabilities consist of deferred revenues from marina and storage operations and customer deposits and are classified in customer deposits in the Company’s unaudited condensed consolidated balance sheets. Deposits received from customers are recorded as a liability until the related sales orders have been fulfilled by us and control of the vessel or part/accessory is transferred to the customer. The activity in customer deposits for the three and six months ended March 31, 2023 is as follows: ($ in thousands) Three Months Ended Six Months Ended Beginning contract liability $ 60,084 $ 65,460 Revenue recognized from contract liabilities included in the beginning balance (45,025) (58,229) Increases due to business combinations and cash received, net of amounts recognized in revenue during the period 43,961 51,789 Ending contract liability $ 59,020 $ 59,020 The following tables set forth percentages on the timing of revenue recognition for the three and six months ended March 31, 2023 and 2022. Three Months Ended Three Months Ended Goods and services transferred at a point in time 94.6 % 95.2 % Goods and services transferred over time 5.4 % 4.8 % Total Revenue 100.0 % 100.0 % Six Months Ended Six Months Ended Goods and services transferred at a point in time 93.9 % 94.3 % Goods and services transferred over time 6.1 % 5.7 % Total Revenue 100.0 % 100.0 % Income Taxes OneWater Inc. is a corporation and as a result, is subject to U.S. federal, state and local income taxes. We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events included in the consolidated financial statements. Under this method, we determine deferred tax assets and liabilities on the basis of the differences between the book value and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period in which the enactment date occurs. We recognize deferred tax assets to the extent we believe these assets are more-likely-than-not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent results of operations. OneWater LLC is treated as a partnership for U.S. federal income tax purposes and therefore does not pay U.S. federal income tax on its taxable income. Instead, the OneWater LLC members are liable for U.S. federal income tax on their respective shares of the Company’s taxable income reported on the members’ U.S. federal income tax returns. When there are situations with uncertainty as to the timing of the deduction, the amount of the deduction, or the validity of the deduction, the Company adjusts the financial statements to reflect only those tax positions that are more-likely-than-not to be sustained. Positions that meet this criterion are measured using the largest benefit that is more than 50% likely to be realized. Interest and penalties related to income taxes are included in the benefit (provision) for income taxes in the consolidated statements of operations. Vendor Consideration Received Consideration received from vendors is accounted for in accordance with FASB Accounting Standards Codification 330, ‘‘Inventory’’ (‘‘ASC 330’’). Pursuant to ASC 330, manufacturer incentives based upon cumulative volume of sales and purchases are recorded as a reduction of inventory cost and related cost of sales when the amounts are probable and reasonably estimable. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the periods presented. Actual results could differ materially from these estimates. Estimates and assumptions are reviewed periodically, and the effects of any revisions are reflected in the consolidated financial statements in the period they are determined to be necessary. Significant estimates made in the accompanying unaudited condensed consolidated financial statements include, but are not limited to, those relating to inventory mark downs, certain assumptions related to intangible and long-lived assets and valuation of contingent consideration. Segment Information

New Accounting Pronouncements

New Accounting Pronouncements	6 Months Ended
	Mar. 31, 2023
Accounting Standards Update and Change in Accounting Principle [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805) – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”, which is intended to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to the recognition of an acquired contract liability and payment terms and their effect on subsequent revenue recognized by the acquirer. The pronouncement is effective for a public company’s annual reporting periods beginning after December 15, 2022, and interim periods within those annual periods. The Company is currently evaluating the impact that this standard will have on the consolidated financial statements. The Company plans to adopt the pronouncement in fiscal year 2024. Other than as noted above, there are no new accounting pronouncements that are expected to have a material effect on our consolidated financial statements.

Acquisitions

Acquisitions	6 Months Ended
	Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]
Acquisitions	Acquisitions The results of operations of acquisitions are included in the accompanying unaudited condensed consolidated financial statements from the acquisition date. The purchase price of acquisitions is allocated to identifiable tangible assets and intangible assets acquired based on their estimated fair values at the acquisition date, with the excess being allocated to goodwill. Under the acquisition method of accounting, the purchase price is allocated to the tangible and intangible assets acquired and liabilities assumed based on information currently available. For the acquisitions of Taylor Marine Centers and Harbor View Marine, the valuation of tangible assets, assumed liabilities and identifiable intangible assets are preliminary as the acquisitions are subject to certain customary closing and post-closing adjustments. For the six months ended March 31, 2023 , the Company completed the following transactions: • On October 1, 2022, Taylor Marine Centers with locations in Maryland and Delaware • On December 1, 2022, Harbor View Marine with locations in Alabama and Florida Consideration paid for the acquisitions was $41.8 million with $28.6 million paid at closing, $10.6 million in non-cash financing and the remaining $2.6 million in estimated payments of contingent consideration. The estimated payments of contingent consideration are part of earnouts related to the achievement of certain post-acquisition increases in adjusted EBITDA of the acquired companies. The acquisition contingent consideration was developed using weighted average projections based on the Company’s historical experience and current forecasts for the industry. There are no minimum or maximum payouts on the acquisition contingent consideration. The table below summarizes the preliminary fair values of the assets acquired and liabilities assumed at the acquisition date, including the goodwill recorded as a result of the transactions: Summary of Assets Acquired and Liabilities Assumed ($ in thousands) Total Acquisitions Accounts receivable $ 188 Inventories 6,232 Prepaid expenses 73 Property and equipment 11,587 Operating lease right-of-use assets 2,952 Identifiable intangible assets 8,800 Goodwill 18,480 Accounts payable (17) Accrued expenses (354) Customer deposits (1,000) Notes payable - floor plan (2,228) Operating lease liabilities (2,952) Aggregate acquisition date fair value $ 41,761 Consideration transferred $ 41,761 In connection with the acquisition of Harbor View Marine, an entity affiliated with the Company agreed to acquire the real estate for the two acquired locations, in effect providing non-cash financing. The Company has accounted for this transaction as a sale and leaseback of the properties in our unaudited condensed consolidated financial statements. There was no gain or loss recorded as part of the transaction. The leases for the two properties include an initial term of 15 years and two, five-year renewal options. The leases are accounted for as operating leases and are included in the operating lease right-of-use assets and operating lease liabilities on the unaudited condensed consolidated balance sheet. We expect substantially all of the goodwill related to acquisitions completed during the six months ended March 31, 2023 to be deductible for federal income tax purposes. The fair value of trade name intangible assets as of the acquisition date were determined using the relief from royalty model. Included in our results for the three and six months ended March 31, 2023, the acquisitions contributed $18.0 million and $26.7 million to our consolidated revenue and $2.2 million and $2.7 million to our income before income tax expense, respectively. Costs related to acquisitions are included in transaction costs and primarily relate to legal, accounting, valuation and other fees, which are charged directly to operations in the accompanying consolidated statements of operations as incurred in the amount of $0.1 million and $1.0 million for the three and six months ended March 31, 2023, respectively. Comparatively, we recorded $0.7 million and $3.7 million in acquisition related transaction costs for the three and six months ended March 31, 2022, respectively. The following unaudited pro forma summary presents consolidated information as if all acquisitions in the three and six-month period ended March 31, 2023 and 2022 had occurred on October 1, 2021: Three Months Ended Three Months Ended ($ in thousands) (Unaudited) Pro forma revenue $ 524,331 $ 489,940 Pro forma net income $ 27,037 $ 48,350 Six Months Ended Six Months Ended ($ in thousands) (Unaudited) Pro forma revenue $ 893,694 $ 918,076 Pro forma net income $ 38,579 $ 74,266 The amounts have been calculated by applying our accounting policies and estimates. Pro forma net income has been tax affected based on the Company’s effective tax rate in the historical periods presented.

Accounts Receivable

Accounts Receivable	6 Months Ended
	Mar. 31, 2023
Receivables [Abstract]
Accounts Receivable	Accounts Receivable Accounts receivable primarily consists of trade accounts receivable, contracts in transit and manufacturer receivables. Trade receivables include amounts due from customers on the sale of boats, parts, service, and storage. Contracts in transit represent anticipated funding from the loan agreement customers execute at the dealership when they purchase their new or pre-owned boat. These finance contracts are typically funded within 30 days. Amounts due from manufacturers represent receivables for various manufacturer incentive programs and parts and service work performed pursuant to the manufacturers’ warranties. The allowance for credit losses is estimated based on past collection experience, current conditions and reasonable and supportable forecasts. The activity for charges and subsequent recoveries is immaterial. Accounts receivable consisted of the following: ($ in thousands) March 31, 2023 September 30, 2022 Contracts in transit $ 42,631 $ 14,543 Trade accounts receivable 31,543 37,359 Manufacturer receivable 7,747 7,224 Total accounts receivable 81,921 59,126 Less – allowance for credit losses (881) (1,166) Total accounts receivable, net $ 81,040 $ 57,960

Inventories

Inventories	6 Months Ended
	Mar. 31, 2023
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consisted of the following at: ($ in thousands) March 31, 2023 September 30, 2022 New vessels $ 443,885 $ 243,090 Pre-owned vessels 66,522 51,607 Work in process, parts and accessories 82,940 78,262 $ 593,347 $ 372,959

Goodwill and Other Identifiable

Goodwill and Other Identifiable Intangible Assets	6 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Identifiable Intangible Assets	Goodwill and Other Identifiable Intangible Assets Our acquisitions have resulted in the recording of goodwill and other identifiable intangible assets. Goodwill is an asset representing operational synergies and future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Intangible assets consist of internally developed software, domain names and other identifiable intangible assets such as trade names, developed technologies, including design libraries, and customer relationships related to the acquisitions the Company has completed. The changes in goodwill and identifiable intangible assets are as follows: Goodwill Trade Names Developed Technologies Customer Relationships Domain Names Internally Developed Total ($ in thousands) Unamortized Unamortized Amortized Amortized Amortized Amortized Amortized Net balance as of September 30, 2022 378,588 186,779 14,274 101,230 1,970 2,218 306,471 Acquisitions during the six months ended March 31, 2023 18,480 8,800 - - - 26 8,826 Other adjustments during the six months ended March 31, 2023 401 - - - - - - Accumulated amortization for the six months ended March 31, 2023 - - (773) (5,374) (208) (231) (6,586) Net balance as of March 31, 2023 $ 397,469 $ 195,579 $ 13,501 $ 95,856 $ 1,762 $ 2,013 $ 308,711 Amortization expense was $3.3 million and $6.6 million for the three and six months ended March 31, 2023, and is recorded in depreciation and amortization expense in the unaudited condensed consolidated statements of operations. Amortization expense was $2.6 million for the three and six months ended March 31, 2022. For acquisitions during the six months ended March 31, 2023, the weighted average useful life of internally developed software is 5 years. The following table summarizes the expected amortization expense for fiscal years 2023 through 2027 and thereafter ($ in thousands): 2023 (excluding the six months ended March 31, 2023) $ 6,587 2024 13,175 2025 13,175 2026 13,175 2027 12,987 Thereafter 54,033 $ 113,132 As of March 31, 2023, the carrying value of goodwill totaled $397.5 million, of which $298.5 million was related to our Dealerships reporting segment and $99.0 million was related to our Distribution reporting segment. As of September 30, 2022, the carrying value of goodwill totaled approximately $378.6 million, of which $280.0 million was related to our Dealerships reporting segment and $98.6 million was related to our Distribution reporting segment.

Notes Payable - Floor Plan

Notes Payable - Floor Plan	6 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Notes Payable - Floor Plan	Notes Payable — Floor Plan The Company maintains an ongoing wholesale marine products inventory financing program with a syndicate of banks. The program is administered by Wells Fargo Commercial Distribution Finance, LLC (“Wells Fargo”). On February 14, 2023, the Company and certain of its subsidiaries entered into the Fourth Amendment to the Seventh Amended and Restated Inventory Financing Agreement (as amended, the “Inventory Financing Facility”) with Wells Fargo and the other financial institutions party thereto to increase the maximum borrowing amount available under the Inventory Financing Facility to $550.0 million. The Inventory Financing Facility expires on December 1, 2023. The outstanding balance of the facility was $485.4 million and $267.1 million, as of March 31, 2023 and September 30, 2022, respectively. Interest on new boats and for rental units is calculated using the Adjusted 30-Day Average SOFR (as defined in the Inventory Financing Facility) (“SOFR”) plus an applicable margin of 2.75% to 5.00% depending on the age of the inventory. Interest on pre-owned boats in calculated at the new boat rate plus 0.25%. Wells Fargo will finance 100.0% of the vendor invoice price for new boats, engines, and trailers. As of March 31, 2023 the interest rate on the Inventory Financing Facility ranged from 7.49% to 9.74% for new inventory and 7.74% to 9.99% for pre-owned inventory. As of September 30, 2022 the interest rate on the Inventory Financing Facility ranged from 5.33% to 7.58% for new inventory and 5.58% to 7.83% for pre-owned inventory. Borrowing capacity available at March 31, 2023 and September 30, 2022 was $64.6 million and $232.9 million, respectively. The Inventory Financing Facility has certain financial and non-financial covenants as specified in the agreement. The financial covenants include requirements to comply with a maximum funded debt to EBITDA ratio (as defined in the Inventory Financing Facility). In addition, certain non-financial covenants could restrict the Company’s ability to sell assets (excluding inventory in the normal course of business), engage in certain mergers and acquisitions, incur additional debt and pay cash dividends or distributions, among others. The Company was in compliance with all covenants at March 31, 2023. The collateral for the Inventory Financing Facility consists primarily of our inventory that is financed through the Inventory Financing Facility and related assets, including accounts receivable, bank accounts and proceeds of the foregoing, and excludes the collateral that underlies the term note payable to Truist Bank.

Long-term Debt and Line of Cred

Long-term Debt and Line of Credit	6 Months Ended
	Mar. 31, 2023
Long-Term Debt, Unclassified [Abstract]
Long-term Debt and Line of Credit	Long-term Debt and Line of CreditOn August 9, 2022, the Company and certain of its subsidiaries entered into the Amended and Restated Credit Agreement (the “A&R Credit Facility”) with Truist Bank. The A&R Credit Facility provides for a $65.0 million revolving credit facility (the “A&R Revolving Facility”) that may be used for revolving credit loans (including up to $5.0 million in swingline loans and up to $5.0 million in letters of credit) and a $445.0 million term loan (the “A&R Term Loan”). Subject to certain conditions, the available amount under the revolving credit facility and term loans may be increased by $125.0 million in the aggregate. The A&R Credit Facility bears interest at a rate that is equal to Term SOFR plus an applicable margin ranging from 1.75% to 2.75% based on certain consolidated leverage ratio measures. The A&R Revolving Facility matures on August 9, 2027. The A&R Term Loan is repayable in installments beginning December 31, 2022, with the remainder due on August 9, 2027. The A&R Credit Facility is collateralized by certain real and personal property (including certain capital stock) of the Company and its subsidiaries. The collateral does not include inventory and certain other assets of the Company’s subsidiaries financed under the Inventory Financing Facility. The A&R Credit Facility is subject to certain financial covenants related to the maintenance of a minimum fixed charge coverage ratio and a maximum consolidated leverage ratio. The A&R Credit Facility also contains non-financial covenants and restrictive provisions that, among other things, limit the ability of the Company to incur additional debt, transfer or dispose of all of its assets, make certain investments, loans or payments and engage in certain transactions with affiliates. The Company was in compliance with all covenants at March 31, 2023. Long-term debt consisted of the following at: ($ in thousands) March 31, 2023 September 30, 2022 Term note payable to Truist Bank, secured and bearing interest at 6.98% at March 31, 2023 and 5.31% at September 30, 2022. The note requires quarterly principal payments commencing on December 31, 2022 and maturing with a full repayment on August 9, 2027 $ 433,875 $ 445,000 Revolving note payable for an amount up to $65.0 million to Truist Bank, secured and bearing interest at 7.65% at March 31, 2023. The note requires full repayment on August 9, 2027 30,000 - Notes payable to commercial vehicle lenders secured by the value of the vehicles bearing interest at rates ranging from 0.0% to 8.4% per annum. The notes require monthly installment payments of principal and interest ranging from $100 to $5,600 through July 2028 4,477 4,173 Note payable to Tom George Yacht Group, unsecured and bearing interest at 5.5% per annum. The note requires monthly interest payments, with a balloon payment of principal due on December 1, 2023 2,056 2,056 Note payable to Norfolk Marine Company, unsecured and bearing interest at 4.0% per annum. The note requires quarterly interest payments, with a balloon payment of principal due on December 1, 2024 1,126 1,126 Total debt outstanding 471,534 452,355 Less current portion (net of debt issuance costs) (23,919) (21,642) Less unamortized portion of debt issuance costs (8,359) (9,551) Long-term debt, net of current portion and unamortized debt issuance costs $ 439,256 $ 421,162

Stockholders' and Members' Equi

Stockholders' and Members' Equity	6 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Stockholders' and Members' Equity	Stockholders’ and Members’ Equity Equity-Based Compensation We maintain the OneWater Marine Inc. Omnibus Incentive Plan (the “LTIP”) to incentivize individuals providing services to OneWater Inc. and its subsidiaries and affiliates. The LTIP provides for the grant, from time to time, at the discretion of the board of directors of OneWater Marine Inc. (the “Board”) or a committee thereof, of (1) stock options, (2) stock appreciation rights, (3) restricted stock, (4) restricted stock units, (5) stock awards, (6) dividend equivalents, (7) other stock-based awards, (8) cash awards, (9) substitute awards and (10) performance awards. The total number of shares reserved for issuance under the LTIP that may be issued pursuant to incentive stock options (which generally are stock options that meet the requirements of Section 422 of the Code) is 1,573,446. The LTIP is and will continue to be administered by the Board, except to the extent the Board elects a committee of directors to administer the LTIP. Class A common stock subject to an award that expires or is cancelled, forfeited, exchanged, settled in cash or otherwise terminated without delivery of shares (including forfeiture of restricted stock awards) and shares withheld to pay the exercise price of, or to satisfy the withholding obligations with respect to, an award will again be available for delivery pursuant to other awards under the LTIP. During the six months ended March 31, 2023, the Board approved the grant of 83,036 performance-based restricted stock units, which represents 100% of the target award. Performance-based restricted stock units provide an opportunity for the recipient to receive a number of shares of our common stock based on our performance goals. A performance-based restricted stock unit equals one share of common stock of the Company. Of this amount, 13,288 performance-based restricted stock units fully vest on October 1, 2023 and the remaining 69,748 restricted stock units vest in three equal annual installments commencing on October 1, 2023. As of March 31, 2023, the Company estimated achievement of the performance targets at 100%. During the six months ended March 31, 2023, the Board approved the grant of 133,735 time-based restricted stock units. Of this amount, 22,550 restricted stock units fully vest on October 1, 2023 and the remaining 111,185 restricted stock units vest in three equal annual installments commencing on October 1, 2023. Compensation cost for time-based restricted stock units is based on the closing price of our common stock on the date immediately preceding the grant and is recognized on a graded basis over the applicable vesting periods. Compensation cost for performance-based restricted stock units is based on the closing price of our common stock on the date immediately preceding the grant and the ultimate performance level achieved and is recognized on a graded basis over the applicable vesting period. The Company recognized $2.3 million and $2.7 million of compensation expense for the three months ended March 31, 2023 and 2022, respectively, which includes $1.1 million and $1.7 million of compensation expense for the three months ended March 31, 2023 and 2022, respectively, for performance-based restricted stock units. The Company recognized $4.7 million and $4.8 million of compensation expense for the six months ended March 31, 2023 and 2022, respectively, which includes $2.2 million and $2.7 million of compensation expense for the six months ended March 31, 2023 and 2022, respectively, for the performance-based restricted stock units. The following table further summarizes activity related to restricted stock units for the six months ended March 31, 2023: Restricted Stock Unit Awards Number of Weighted Average Unvested at September 30, 2022 559,793 $ 28.01 Awarded 216,771 30.08 Vested (151,393) 22.61 Forfeited (1,000) 40.21 Unvested at March 31, 2023 624,171 $ 30.02 As of March 31, 2023, the total unrecognized compensation expense related to outstanding equity awards was $8.1 million, which the Company expects to recognize over a weighted-average period of 1.3 years. We issue shares of our Class A common stock upon the vesting of performance-based restricted stock units and time-based restricted stock units. These shares are issued from our authorized and not outstanding common stock. In addition, in connection with the vesting of restricted stock units, we repurchase a portion of shares issued equal to the amount of employee income tax withholding. Earnings Per Share Basic and diluted earnings per share of Class A common stock is computed by dividing net income attributable to OneWater Inc. by the weighted-average number of Class A common stock outstanding during the period. Diluted earnings per share is computed by giving effect to all potentially dilutive shares. The following table sets forth the calculation of earnings per share for the three months ended March 31, 2023 and 2022 (in thousands, except per share data): Earnings per share: Three Months Ended Three Months Ended Numerator: Net income attributable to OneWater Inc. $ 22,804 $ 36,297 Denominator: Weighted-average number of unrestricted outstanding common shares used to calculate basic net income per share 14,340 13,864 Effect of dilutive securities: Restricted stock units 315 408 Employee Stock Purchase Plan - - Diluted weighted-average shares of Class A common stock outstanding used to calculate diluted earnings per share 14,655 14,272 Earnings per share of Class A common stock – basic $ 1.59 $ 2.62 Earnings per share of Class A common stock – diluted $ 1.56 $ 2.54 The following table sets forth the calculation of earnings per share for the six months ended March 31, 2023 and 2022 (in thousands, except per share data): Earnings per share: Six Months Ended March 31, 2023 Six Months Ended March 31, 2022 Numerator: Net income attributable to OneWater Inc. $ 31,704 $ 56,316 Denominator: Weighted-average number of unrestricted outstanding common shares used to calculate basic net income per share 14,318 13,619 Effect of dilutive securities: Restricted stock units 291 398 Employee Stock Purchase Plan 3 - Diluted weighted-average shares of Class A common stock outstanding used to calculate diluted earnings per share 14,612 14,017 Earnings per share of Class A common stock – basic $ 2.21 $ 4.14 Earnings per share of Class A common stock – diluted $ 2.17 $ 4.02 On March 30, 2022, the Board approved a share repurchase program up to $50 million. During the six months ended March 31, 2023, the Company repurchased and retired 63,353 shares of Class A common stock under the repurchase program for a purchase price of approximately $1.6 million. As of March 31, 2023 the Company has repurchased and retired 73,487 shares of Class A common stock under the repurchase program for a purchase price of approximately $1.9 million. As of March 31, 2023, approximately $48.1 million remained available for future purchase under the repurchase program. The repurchase program does not have a predetermined expiration date. Shares of Class B common stock and unvested restricted stock units do not share in the income (losses) of the Company and are therefore not participating securities. As such, separate presentation of basic and diluted earnings per share under the two-class method has not been presented. The following number of weighted-average potentially dilutive shares were excluded from the calculation of diluted earnings per share because the effect of including such potentially dilutive shares would have been antidilutive upon conversion (in thousands): Three Months Ended Three Months Ended Class B common stock 1,430 1,430 Restricted Stock Units 290 199 1,720 1,629 Six Months Ended March 31, 2023 Six Months Ended March 31, 2022 Class B common stock 1,430 1,625 Restricted Stock Units 322 217 1,752 1,842 Employee Stock Purchase Plan At the Company’s 2021 Annual Meeting of Stockholders (the “Annual Meeting”), held on February 23, 2021, the Company’s stockholders approved the OneWater Marine Inc. 2021 Employee Stock Purchase Plan (the “ESPP”), which was approved and adopted by the Board as of January 13, 2021 (the “Adoption Date”), subject to stockholder approval at the Annual Meeting. The effective date of the ESPP is February 23, 2021, and, unless earlier terminated, the ESPP will expire on the twentieth anniversary of the Adoption Date. The ESPP will be administered by the Board or by one or more committees to which the Board delegates such administration. The ESPP enables eligible employees to purchase shares of the Company’s Class A common stock at a discount through participation in discrete offering periods. The ESPP is intended to qualify as an employee stock purchase plan under section 423 of the Internal Revenue Code of 1986, as amended. Up to a maximum of 449,257 shares of the Company’s Class A common stock may be issued under the ESPP as of March 31, 2023, subject to certain adjustments as set forth in the ESPP. On the first day of each fiscal year during the term of the ESPP, beginning on October 1, and ending on (and including) September 30, the number of shares of Class A common stock that may be issued under the ESPP will increase by a number of shares equal to the least of (i) 1% of the outstanding shares on the Adoption Date, or (ii) such lesser number of shares (including zero) that the administrator determines for purposes of the annual increase for that fiscal year. The number of shares of Class A common stock that may be granted to any single participant in any single option period will be subject to certain limitations set forth in the plan. The Company recorded equity-based compensation of $0.2 million and $0.4 million during the three and six months ended March 31, 2023, respectively, related to the ESPP. As of March 31, 2023, the Company had current liabilities of $0.5 million for future purchases of shares under the ESPP. During the six months ended March 31, 2023, 43,692 shares were issued under the ESPP at an average price per share of $24.31. We used a Black-Scholes model to estimate the fair value of the options granted to purchase shares issued pursuant to the ESPP. Volatility is based on the historical volatility in our common stock. The risk-free rate for periods within the contractual term of the options is based on the U.S. Treasury yield curve in effect at the time of grant. The following are the weighted-average assumptions used for the period ended March 31, 2023: 2023 Dividend yield 0.0 % Risk-free interest rate 4.8 % Volatility 45.6 % Expected life Six months Distributions During the six months ended March 31, 2023, the Company made distributions to OneWater Unit Holders for certain permitted tax payments.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements In determining fair value, the Company uses various valuation approaches including market, income and/or cost approaches. FASB standard ‘‘Fair Value Measurements’’ (Topic 820) establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from independent sources. Unobservable inputs are those that reflect the Company’s expectation of the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the reliability of inputs as follows: Level 1 – Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Assets utilizing Level 1 inputs include marketable securities that are actively traded. Level 2 – Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement. Asset and liability measurements utilizing Level 3 inputs include those used in estimating fair value of non-financial assets and non-financial liabilities in purchase acquisitions, those used in assessing impairment of property, plant and equipment and other intangibles, those used in the reporting unit valuation in the annual goodwill impairment evaluation and those used in the valuation of contingent consideration. The availability of observable inputs can vary and is affected by a wide variety of factors. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment required in determining fair value is greatest for assets and liabilities categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is disclosed is determined based on the lowest level input that is significant to the fair value measurement. Fair value measurements can be volatile based on various factors that may or may not be within the Company’s control. The following tables summarize the Company’s financial assets and liabilities measured at fair value in the accompanying unaudited condensed consolidated balance sheets as of March 31, 2023 and September 30, 2022 March 31, 2023 ($ in thousands) Level 1 Level 2 Level 3 Total Assets: Investment in Equity Securities $ 492 $ - $ - $ 492 Liabilities: Contingent Consideration - - 26,275 26,275 September 30, 2022 ($ in thousands) Level 1 Level 2 Level 3 Total Assets: Investment in Equity Securities $ 772 $ - $ - $ 772 Liabilities: Contingent Consideration - - 37,402 37,402 There were no transfers between the valuation hierarchy Levels 1, 2, and 3 for the three and six months ended March 31, 2023. We measure all equity investments that do not result in consolidation and are not accounted for under the equity method at fair value with the change in fair value included in other expense (income), net, in the unaudited condensed consolidated statements of operations. The fair value of equity investments is measured using quoted prices in its active markets. The investment in equity securities balance is recorded in other long-term assets in the unaudited condensed consolidated balance sheets and consists of a $0.5 million investment in Forza X1, Inc. The portion of unrealized losses recognized related to equity securities still held as of March 31, 2023 consists of the following: ($ in thousands) Three Months Ended Net losses recognized during the period on equity securities $ 20 Less net losses recognized during the period on equity securities sold during the period - Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ 20 ($ in thousands) Six Months Ended Net losses recognized during the period on equity securities $ 280 Less net losses recognized during the period on equity securities sold during the period - Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ 280 There were no unrealized gains or losses recognized for the three and six months ended March 31, 2022 related to equity securities. We estimate the fair value of contingent consideration using a probability-weighted discounted cash flow model based on forecasted future earnings or other agreed upon metrics including the production of acquisition leads. The acquisition contingent consideration liability has been accounted for based on inputs that are unobservable and significant to the overall fair value measurement (Level 3). The contingent consideration balance is recorded in other payables and accrued expenses and other long-term liabilities in the unaudited condensed consolidated balance sheets. Changes in fair value and net present value of contingent consideration are recorded in change in fair value of contingent consideration in the unaudited condensed consolidated statements of operations. The fair value of contingent consideration is reassessed on a quarterly basis. The following table sets forth the changes in fair value of our contingent consideration for the three and six months ended March 31, 2023: ($ in thousands) Three Months Ended March 31, 2023 Balance as of December 31, 2022 $ 32,817 Additions from acquisitions — Settlement of contingent consideration (8,278) Change in fair value, including accretion 1,736 Balance as of March 31, 2023 $ 26,275 ($ in thousands) Six Months Ended March 31, 2023 Balance as of September 30, 2022 $ 37,402 Additions from acquisitions 2,550 Settlement of contingent consideration (14,004) Change in fair value, including accretion 327 Balance as of March 31, 2023 $ 26,275

Income Taxes

Income Taxes	6 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company is a corporation and, as a result, is subject to U.S. federal, state and local income taxes. OneWater LLC is treated as a pass-through entity for U.S. federal tax purposes and in most state and local jurisdictions. As such, OneWater LLC’s members, including the Company, are liable for federal and state income taxes on their respective shares of OneWater LLC’s taxable income. Our effective tax rates of 22.8% and 23.2% for the three months ending March 31, 2023 and 2022, respectively, and 22.8% and 21.2% for the six months ending March 31, 2023 and 2022, respectively, differ from statutory rates primarily due to earnings allocated to non-controlling interests. The Company recognizes deferred tax assets to the extent it believes these assets are more-likely-than-not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing temporary differences, projected future taxable income, tax planning strategies and recent results of operations. Based on our cumulative earnings history and forecasted future sources of taxable income, we believe that we will fully realize our deferred tax asset in the future. The Company has not recorded a valuation allowance. As of March 31, 2023 and September 30, 2022, the Company has not recognized any uncertain tax positions, penalties, or interest as management has concluded that no such positions exist. The Company is subject to examination in the US Federal and certain state tax jurisdictions for the tax years beginning with the year ended September 30, 2020. In November 2022, the Company received notification that the IRS intends to commence an audit of the federal income tax return of OneWater LLC’s partnership for the tax year ended December 31, 2020. Audit outcomes and the timing of settlements of asserted income tax liabilities, if any, are subject to significant uncertainty. Tax Receivable Agreement In connection with the IPO, the Company entered into a tax receivable agreement (the “Tax Receivable Agreement”) with certain of the owners of OneWater LLC. As of March 31, 2023 and September 30, 2022, our liability under the Tax Receivable Agreement was $46.4 million, representing 85% of the calculated net cash savings in U.S. federal, state and local income tax and franchise tax that OneWater Inc. anticipates realizing in future years from the result of certain increases in tax basis and certain tax benefits attributable to imputed interest as a result of OneWater Inc.’s acquisition of OneWater LLC Units pursuant to an exercise of the Redemption Right or the Call Right (each as defined in the amended and restated limited liability company agreement of OneWater LLC (the “OneWater LLC Agreement”)). The projection of future taxable income involves significant judgment. Actual taxable income may differ from our estimates, which could significantly impact our ability to make payments under the Tax Receivable Agreement. We have determined it is more-likely-than-not that we will be able to utilize all of our deferred tax assets subject to the Tax Receivable Agreement; therefore, we have recorded a liability under the Tax Receivable Agreement related to the tax savings we may realize from certain increases in tax basis and certain tax benefits attributable to imputed interest as a result of OneWater Inc.’s acquisition of OneWater LLC Units pursuant to an exercise of the Redemption Right or Call Right (each as defined in the OneWater LLC Agreement). If we determine the utilization of these deferred tax assets is not more-likely-than-not in the future, our estimate of amounts to be paid under the Tax Receivable Agreement would be reduced. In this scenario, the reduction of the liability under the Tax Receivable Agreement would result in a benefit to our consolidated statements of operations.

Contingencies and Commitments

Contingencies and Commitments	6 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Contingencies and Commitments	Contingencies and Commitments Employment Agreements The Company is party to employment agreements with certain executives, which provide for compensation, other benefits and severance payments under certain circumstances. The Company also has consulting and noncompete agreements in place with previous owners of acquired companies. Claims and Litigation The Company is involved in various legal proceedings as either the defendant or plaintiff. Due to their nature, such legal proceedings involve inherent uncertainties including, but not limited to, court rulings, negotiations between the affected parties and other actions. Management assesses the probability of losses or gains for such contingencies and accrues a liability and/or discloses the relevant circumstances as appropriate. In the opinion of management, it is not reasonably probable that the pending litigation, disputes or claims against the Company, if decided adversely, will have a material adverse effect on its financial condition, results of operations or cash flows. Additionally, based on the Company’s review of the various types of claims currently known, there is no indication of a material reasonably possible loss in excess of amounts accrued. The Company currently does not anticipate that any known claim will materially adversely affect our financial condition, liquidity, or results of operations. However, the outcome of any matter cannot be predicted with certainty, and an unfavorable resolution of one or more matters presently known or arising in the future could have a material adverse effect on the Company’s financial condition, liquidity or results of operations. Risk Management The Company is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions and natural disasters for which the Company carries commercial insurance. There have been no significant reductions in coverage from the prior year and settlements have not exceeded coverage in the past years.

Leases

Leases	6 Months Ended
	Mar. 31, 2023
Leases [Abstract]
Leases	Leases The Company leases real estate and equipment under operating lease agreements. Leases with an initial term of 12 months or less are not recorded on the balance sheet. We recognize lease expense for these leases on a straight-line basis over the lease term. For leases with terms in excess of 12 months, we record a right-of-use (“ROU”) asset and lease liability based on the present value of lease payments over the lease term. We do not have any significant leases that have not yet commenced that create significant rights and obligations for us. The Company has elected the practical expedient not to separate lease and non-lease components for all leases that qualify. Our real estate and equipment leases often require payment of maintenance, real estate taxes and insurance. These costs are generally variable and based on actual costs incurred by the lessor. These amounts are not included in the consideration of the contract when determining the ROU asset and lease liability but are reflected as variable lease payments. Most leases include one or more options to renew, with renewal terms that can extend the lease from one ten Certain of our lease agreements include rental payments based on percentage of retail sales over contractual levels and others include rental payments adjusted periodically based on index rates. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Mar. 31, 2023
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions In accordance with agreements approved by the Board, we purchased inventory, in conjunction with our retail sale of the products, from certain entities affiliated with the Company. Total purchases incurred under these arrangements were $26.0 million and $25.0 million for the three months ended March 31, 2023 and 2022, respectively, and $47.4 million and $58.2 million for the six months ended March 31, 2023 and 2022, respectively. In accordance with agreements approved by the Board, certain entities affiliated with the Company receive fees for rent of commercial property. Total expenses incurred under these arrangements were $0.7 million and $0.6 million for the three months ended March 31, 2023 and 2022, respectively, and $1.1 million and $1.3 million for the six months ended March 31, 2023 and 2022, respectively. Additionally, see Note 4 for information regarding a sale and leaseback transaction with an entity affiliated with the Company in connection with an acquisition by the Company. In accordance with agreements approved by the Board, the Company received fees from certain entities and individuals affiliated with the Company for goods and services. Total fees recorded under these arrangements were less than $0.1 million and $4.8 million for the three months ended March 31, 2023 and 2022, respectively, and $1.0 million and $4.9 million for the six months ended March 31, 2023 and 2022, respectively. In accordance with agreements approved by the Board, the Company made payments to certain entities and individuals affiliated with the Company for goods and services. Total payments recorded under these arrangements were $0.1 million for the three months ended March 31, 2023, and $0.1 million for each of the six months ended March 31, 2023 and 2022. No payments were recorded under these arrangements for the three months ended March 31, 2022. In connection with transactions noted above, the Company owed less than $0.1 million and $2.0 million as recorded within accounts payable as of March 31, 2023 and September 30, 2022, respectively. Additionally, the Company was due $1.0 million and $0.2 million as recorded within accounts receivable as of March 31, 2023 and September 30, 2022, respectively.

Segment Information

Segment Information	6 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Segment Information	Segment Information As of March 31, 2023, we had two reportable segments: (1) Dealerships and (2) Distribution. See Note 2 for more information about our segments. Reportable segment financial information as of and for the three and six months ended March 31, 2023 are as follows: As of and for the Three Months Ended March 31, 2023 ($ in thousands) Dealerships Distribution Total Revenue $ 478,348 $ 45,983 $ 524,331 Income (loss) from operations 48,386 504 48,890 Depreciation and amortization 2,564 3,796 6,360 Transaction costs 241 - 241 Change in fair value of contingent consideration 1,626 110 1,736 Total assets 1,361,097 409,354 1,770,451 As of and for the Six Months Ended March 31, 2023 ($ in thousands) Dealerships Distribution Total Revenue $ 805,121 $ 85,869 $ 890,990 Income (loss) from operations 78,239 (2,813) 75,426 Depreciation and amortization 4,938 7,604 12,542 Transaction costs 1,423 148 1,571 Change in fair value of contingent consideration 83 244 327 Total assets 1,361,097 409,354 1,770,451 The Company identified the change in reportable segments as of August 9, 2022 and as such no financial information is presented as of and for the three and six months ended March 31, 2022.

Description of Company and Ba_2

Description of Company and Basis of Presentation (Policies)	6 Months Ended
	Mar. 31, 2023
Description of Company and Basis of Presentation [Abstract]
Principles of Consolidation	Principles of Consolidation As the sole managing member of OneWater LLC, OneWater Inc. operates and controls all of the businesses and affairs of OneWater LLC. Through OneWater LLC and its wholly-owned subsidiaries, as well as majority-owned subsidiaries over which the Company exercises control, OneWater Inc. conducts its business. As a result, OneWater Inc. consolidates the financial results of OneWater LLC and its subsidiaries and reports non-controlling interests related to the portion of units of OneWater LLC (the “OneWater LLC Units”) not owned by OneWater Inc., which will reduce net income (loss) attributable to OneWater Inc.’s Class A stockholders. As of March 31, 2023, OneWater Inc. owned 90.9% of the economic interest of OneWater LLC.
Basis of Financial Statement Preparation	Basis of Financial Statement Preparation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements, which do not include all the information and notes required by such accounting principles for annual financial statements. The unaudited condensed consolidated financial statements should be read in conjunction with OneWater Inc.’s Annual Report on Form 10-K for the year ended September 30, 2022. All adjustments, consisting of only normal recurring adjustments considered necessary for fair presentation, have been reflected in these unaudited condensed consolidated financial statements.
Cash	Cash At times the amount of cash on deposit may exceed the federally insured limit of the bank. Deposit accounts at each of the institutions are insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC). At March 31, 2023 and September 30, 2022, the Company exceeded FDIC limits at various institutions. The Company has not experienced any losses in such accounts and believes there is little to no exposure to any significant credit risk.
Restricted Cash	Restricted CashRestricted cash relates to amounts collected for pre-owned sales, in certain states, which are held in escrow on behalf of the respective buyers and sellers for future purchases of boats. Total customer deposits are shown as a liability on the consolidated balance sheets. These liabilities may be more than the applicable restricted cash balances and fluctuate due to timing differences and because in certain states the deposits are not restricted from use.
Inventories	Inventories
Goodwill and Other Identifiable Intangible Assets	Goodwill and Other Identifiable Intangible Assets Goodwill and intangible assets are accounted for in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350, ‘‘Intangibles - Goodwill and Other’’ (‘‘ASC 350’’), which provides that the excess of cost over the fair value of the net assets of businesses acquired, including other identifiable intangible assets, is recorded as goodwill. Goodwill is an asset representing operational synergies and future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. In accordance with ASC 350, Goodwill is tested for impairment at least annually, or more frequently when events or circumstances indicate that impairment might have occurred. ASC 350 also states that if an entity determines, based on an assessment of certain qualitative factors, that it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then a quantitative goodwill impairment test is unnecessary.
Sales Tax	Sales Tax
Revenue Recognition	Revenue Recognition Revenue is recognized from the sale of products and commissions earned on new and pre-owned boats (including used, brokerage, consignment and wholesale) when ownership is transferred to the customer, which is generally upon acceptance or delivery to the customer. At the time of acceptance or delivery, the customer is able to direct the use of, and obtain substantially all of the benefits at such time. We are the principal with respect to revenue from new, pre-owned and consignment sales and such revenue is recorded at the gross sales price. With respect to brokerage transactions, we are acting as an agent in the transaction, therefore the fee or commission is recorded on a net basis. Revenue from parts and accessories sold directly to a customer (not on a repair order) is recognized when control of the item is transferred to the customer, which is typically upon shipment. Revenue from parts and service operations (boat maintenance and repairs) are recorded over time as services are performed. Satisfaction of this performance obligation creates an asset with no alternative use for which an enforceable right to payment for performance to date exists within our contractual agreements. Each boat maintenance and repair service is a single performance obligation that includes both the parts and labor associated with the service. Payment for boat maintenance and repairs is typically due upon the completion of the service, which is generally completed within a period of one year or less from contract inception. The Company recorded contract assets in prepaid expenses and other current assets of $4.3 million and $3.7 million as of March 31, 2023 and September 30, 2022. Certain parts and service transactions require the Company to perform shipping and handling activities after the transfer of control to the customer (e.g., when control transfers prior to delivery). They are considered fulfillment activities and are included in selling, general and administrative expenses. Revenue from storage and marina operations is recognized on a straight-line basis over the term of the contract as services are completed. Revenue from arranging financing, insurance and extended warranty contracts to customers through various third-party financial institutions and insurance companies is recognized when the related boats are sold. We do not directly finance our customers’ boat, motor or trailer purchases. We are acting as an agent in the transaction, therefore the commission is recorded on a net basis. Subject to our agreements and in the event of early cancellation, prepayment or default of such loans or insurance contracts by the customer, we may be assessed a chargeback for a portion of the commission paid by the third-party financial institutions and insurance companies. We reserve for these chargebacks based on our historical experience with repayments or defaults. Chargebacks were not material to the unaudited condensed consolidated financial statements for the three and six months ended March 31, 2023 and March 31, 2022.
Income Taxes	Income Taxes OneWater Inc. is a corporation and as a result, is subject to U.S. federal, state and local income taxes. We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events included in the consolidated financial statements. Under this method, we determine deferred tax assets and liabilities on the basis of the differences between the book value and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period in which the enactment date occurs. We recognize deferred tax assets to the extent we believe these assets are more-likely-than-not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent results of operations. OneWater LLC is treated as a partnership for U.S. federal income tax purposes and therefore does not pay U.S. federal income tax on its taxable income. Instead, the OneWater LLC members are liable for U.S. federal income tax on their respective shares of the Company’s taxable income reported on the members’ U.S. federal income tax returns. When there are situations with uncertainty as to the timing of the deduction, the amount of the deduction, or the validity of the deduction, the Company adjusts the financial statements to reflect only those tax positions that are more-likely-than-not to be sustained. Positions that meet this criterion are measured using the largest benefit that is more than 50% likely to be realized. Interest and penalties related to income taxes are included in the benefit (provision) for income taxes in the consolidated statements of operations.
Vendor Consideration Received	Vendor Consideration Received Consideration received from vendors is accounted for in accordance with FASB Accounting Standards Codification 330, ‘‘Inventory’’ (‘‘ASC 330’’). Pursuant to ASC 330, manufacturer incentives based upon cumulative volume of sales and purchases are recorded as a reduction of inventory cost and related cost of sales when the amounts are probable and reasonably estimable.
Use of Estimates	Use of Estimates
Segment Information	Segment Information
New Accounting Pronouncements	New Accounting Pronouncements In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805) – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”, which is intended to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to the recognition of an acquired contract liability and payment terms and their effect on subsequent revenue recognized by the acquirer. The pronouncement is effective for a public company’s annual reporting periods beginning after December 15, 2022, and interim periods within those annual periods. The Company is currently evaluating the impact that this standard will have on the consolidated financial statements. The Company plans to adopt the pronouncement in fiscal year 2024. Other than as noted above, there are no new accounting pronouncements that are expected to have a material effect on our consolidated financial statements.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Summary of Contract Liabilities	The activity in customer deposits for the three and six months ended March 31, 2023 is as follows: ($ in thousands) Three Months Ended Six Months Ended Beginning contract liability $ 60,084 $ 65,460 Revenue recognized from contract liabilities included in the beginning balance (45,025) (58,229) Increases due to business combinations and cash received, net of amounts recognized in revenue during the period 43,961 51,789 Ending contract liability $ 59,020 $ 59,020
Summary of Percentages on Timing of Revenue Recognition	The following tables set forth percentages on the timing of revenue recognition for the three and six months ended March 31, 2023 and 2022. Three Months Ended Three Months Ended Goods and services transferred at a point in time 94.6 % 95.2 % Goods and services transferred over time 5.4 % 4.8 % Total Revenue 100.0 % 100.0 % Six Months Ended Six Months Ended Goods and services transferred at a point in time 93.9 % 94.3 % Goods and services transferred over time 6.1 % 5.7 % Total Revenue 100.0 % 100.0 %

Acquisitions (Tables)

Acquisitions (Tables)	6 Months Ended
	Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]
Summary of Assets Acquired and Liabilities Assumed	The table below summarizes the preliminary fair values of the assets acquired and liabilities assumed at the acquisition date, including the goodwill recorded as a result of the transactions: Summary of Assets Acquired and Liabilities Assumed ($ in thousands) Total Acquisitions Accounts receivable $ 188 Inventories 6,232 Prepaid expenses 73 Property and equipment 11,587 Operating lease right-of-use assets 2,952 Identifiable intangible assets 8,800 Goodwill 18,480 Accounts payable (17) Accrued expenses (354) Customer deposits (1,000) Notes payable - floor plan (2,228) Operating lease liabilities (2,952) Aggregate acquisition date fair value $ 41,761 Consideration transferred $ 41,761
Summary of Unaudited Pro Forma Results of Operations	The following unaudited pro forma summary presents consolidated information as if all acquisitions in the three and six-month period ended March 31, 2023 and 2022 had occurred on October 1, 2021: Three Months Ended Three Months Ended ($ in thousands) (Unaudited) Pro forma revenue $ 524,331 $ 489,940 Pro forma net income $ 27,037 $ 48,350 Six Months Ended Six Months Ended ($ in thousands) (Unaudited) Pro forma revenue $ 893,694 $ 918,076 Pro forma net income $ 38,579 $ 74,266

Accounts Receivable (Tables)

Accounts Receivable (Tables)	6 Months Ended
	Mar. 31, 2023
Receivables [Abstract]
Summary of Accounts Receivable	Accounts receivable consisted of the following: ($ in thousands) March 31, 2023 September 30, 2022 Contracts in transit $ 42,631 $ 14,543 Trade accounts receivable 31,543 37,359 Manufacturer receivable 7,747 7,224 Total accounts receivable 81,921 59,126 Less – allowance for credit losses (881) (1,166) Total accounts receivable, net $ 81,040 $ 57,960

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Mar. 31, 2023
Inventory Disclosure [Abstract]
Summary of Inventories	Inventories consisted of the following at: ($ in thousands) March 31, 2023 September 30, 2022 New vessels $ 443,885 $ 243,090 Pre-owned vessels 66,522 51,607 Work in process, parts and accessories 82,940 78,262 $ 593,347 $ 372,959

Goodwill and Other Identifiab_2

Goodwill and Other Identifiable Intangible Assets (Tables)	6 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of Changes in Goodwill and Identifiable Intangible Assets	The changes in goodwill and identifiable intangible assets are as follows: Goodwill Trade Names Developed Technologies Customer Relationships Domain Names Internally Developed Total ($ in thousands) Unamortized Unamortized Amortized Amortized Amortized Amortized Amortized Net balance as of September 30, 2022 378,588 186,779 14,274 101,230 1,970 2,218 306,471 Acquisitions during the six months ended March 31, 2023 18,480 8,800 - - - 26 8,826 Other adjustments during the six months ended March 31, 2023 401 - - - - - - Accumulated amortization for the six months ended March 31, 2023 - - (773) (5,374) (208) (231) (6,586) Net balance as of March 31, 2023 $ 397,469 $ 195,579 $ 13,501 $ 95,856 $ 1,762 $ 2,013 $ 308,711
Summary of Expected Amortization Expense	The following table summarizes the expected amortization expense for fiscal years 2023 through 2027 and thereafter ($ in thousands): 2023 (excluding the six months ended March 31, 2023) $ 6,587 2024 13,175 2025 13,175 2026 13,175 2027 12,987 Thereafter 54,033 $ 113,132

Long-term Debt and Line of Cr_2

Long-term Debt and Line of Credit (Tables)	6 Months Ended
	Mar. 31, 2023
Long-Term Debt, Unclassified [Abstract]
Summary of Long-term Debt and Line of Credit	Long-term debt consisted of the following at: ($ in thousands) March 31, 2023 September 30, 2022 Term note payable to Truist Bank, secured and bearing interest at 6.98% at March 31, 2023 and 5.31% at September 30, 2022. The note requires quarterly principal payments commencing on December 31, 2022 and maturing with a full repayment on August 9, 2027 $ 433,875 $ 445,000 Revolving note payable for an amount up to $65.0 million to Truist Bank, secured and bearing interest at 7.65% at March 31, 2023. The note requires full repayment on August 9, 2027 30,000 - Notes payable to commercial vehicle lenders secured by the value of the vehicles bearing interest at rates ranging from 0.0% to 8.4% per annum. The notes require monthly installment payments of principal and interest ranging from $100 to $5,600 through July 2028 4,477 4,173 Note payable to Tom George Yacht Group, unsecured and bearing interest at 5.5% per annum. The note requires monthly interest payments, with a balloon payment of principal due on December 1, 2023 2,056 2,056 Note payable to Norfolk Marine Company, unsecured and bearing interest at 4.0% per annum. The note requires quarterly interest payments, with a balloon payment of principal due on December 1, 2024 1,126 1,126 Total debt outstanding 471,534 452,355 Less current portion (net of debt issuance costs) (23,919) (21,642) Less unamortized portion of debt issuance costs (8,359) (9,551) Long-term debt, net of current portion and unamortized debt issuance costs $ 439,256 $ 421,162

Stockholders' and Members' Eq_2

Stockholders' and Members' Equity (Tables)	6 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Summary of Restricted Stock Units Activity	The following table further summarizes activity related to restricted stock units for the six months ended March 31, 2023: Restricted Stock Unit Awards Number of Weighted Average Unvested at September 30, 2022 559,793 $ 28.01 Awarded 216,771 30.08 Vested (151,393) 22.61 Forfeited (1,000) 40.21 Unvested at March 31, 2023 624,171 $ 30.02
Summary of Calculation of Earnings per share	The following table sets forth the calculation of earnings per share for the three months ended March 31, 2023 and 2022 (in thousands, except per share data): Earnings per share: Three Months Ended Three Months Ended Numerator: Net income attributable to OneWater Inc. $ 22,804 $ 36,297 Denominator: Weighted-average number of unrestricted outstanding common shares used to calculate basic net income per share 14,340 13,864 Effect of dilutive securities: Restricted stock units 315 408 Employee Stock Purchase Plan - - Diluted weighted-average shares of Class A common stock outstanding used to calculate diluted earnings per share 14,655 14,272 Earnings per share of Class A common stock – basic $ 1.59 $ 2.62 Earnings per share of Class A common stock – diluted $ 1.56 $ 2.54 The following table sets forth the calculation of earnings per share for the six months ended March 31, 2023 and 2022 (in thousands, except per share data): Earnings per share: Six Months Ended March 31, 2023 Six Months Ended March 31, 2022 Numerator: Net income attributable to OneWater Inc. $ 31,704 $ 56,316 Denominator: Weighted-average number of unrestricted outstanding common shares used to calculate basic net income per share 14,318 13,619 Effect of dilutive securities: Restricted stock units 291 398 Employee Stock Purchase Plan 3 - Diluted weighted-average shares of Class A common stock outstanding used to calculate diluted earnings per share 14,612 14,017 Earnings per share of Class A common stock – basic $ 2.21 $ 4.14 Earnings per share of Class A common stock – diluted $ 2.17 $ 4.02
Summary of Antidilutive Securities Excluded From Calculation	The following number of weighted-average potentially dilutive shares were excluded from the calculation of diluted earnings per share because the effect of including such potentially dilutive shares would have been antidilutive upon conversion (in thousands): Three Months Ended Three Months Ended Class B common stock 1,430 1,430 Restricted Stock Units 290 199 1,720 1,629 Six Months Ended March 31, 2023 Six Months Ended March 31, 2022 Class B common stock 1,430 1,625 Restricted Stock Units 322 217 1,752 1,842
Summary of Weighted Average Assumptions	The following are the weighted-average assumptions used for the period ended March 31, 2023: 2023 Dividend yield 0.0 % Risk-free interest rate 4.8 % Volatility 45.6 % Expected life Six months

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Summary of Financial Assets and Liabilities Measured at Fair Value	The following tables summarize the Company’s financial assets and liabilities measured at fair value in the accompanying unaudited condensed consolidated balance sheets as of March 31, 2023 and September 30, 2022 March 31, 2023 ($ in thousands) Level 1 Level 2 Level 3 Total Assets: Investment in Equity Securities $ 492 $ - $ - $ 492 Liabilities: Contingent Consideration - - 26,275 26,275 September 30, 2022 ($ in thousands) Level 1 Level 2 Level 3 Total Assets: Investment in Equity Securities $ 772 $ - $ - $ 772 Liabilities: Contingent Consideration - - 37,402 37,402
Summary of Unrealized Losses Recognized Related to Equity Securities	The portion of unrealized losses recognized related to equity securities still held as of March 31, 2023 consists of the following: ($ in thousands) Three Months Ended Net losses recognized during the period on equity securities $ 20 Less net losses recognized during the period on equity securities sold during the period - Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ 20 ($ in thousands) Six Months Ended Net losses recognized during the period on equity securities $ 280 Less net losses recognized during the period on equity securities sold during the period - Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ 280
Summary of Changes in Fair Value of Contingent Consideration	The following table sets forth the changes in fair value of our contingent consideration for the three and six months ended March 31, 2023: ($ in thousands) Three Months Ended March 31, 2023 Balance as of December 31, 2022 $ 32,817 Additions from acquisitions — Settlement of contingent consideration (8,278) Change in fair value, including accretion 1,736 Balance as of March 31, 2023 $ 26,275 ($ in thousands) Six Months Ended March 31, 2023 Balance as of September 30, 2022 $ 37,402 Additions from acquisitions 2,550 Settlement of contingent consideration (14,004) Change in fair value, including accretion 327 Balance as of March 31, 2023 $ 26,275

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Summary of Reportable Segment Financial Information	Reportable segment financial information as of and for the three and six months ended March 31, 2023 are as follows: As of and for the Three Months Ended March 31, 2023 ($ in thousands) Dealerships Distribution Total Revenue $ 478,348 $ 45,983 $ 524,331 Income (loss) from operations 48,386 504 48,890 Depreciation and amortization 2,564 3,796 6,360 Transaction costs 241 - 241 Change in fair value of contingent consideration 1,626 110 1,736 Total assets 1,361,097 409,354 1,770,451 As of and for the Six Months Ended March 31, 2023 ($ in thousands) Dealerships Distribution Total Revenue $ 805,121 $ 85,869 $ 890,990 Income (loss) from operations 78,239 (2,813) 75,426 Depreciation and amortization 4,938 7,604 12,542 Transaction costs 1,423 148 1,571 Change in fair value of contingent consideration 83 244 327 Total assets 1,361,097 409,354 1,770,451

Description of Company and Ba_3

Description of Company and Basis of Presentation (Details)	6 Months Ended
	Mar. 31, 2023 center state location	Mar. 31, 2022	Dec. 31, 2021
Description of Company and Basis of Presentation [Line Items]
Number of retail locations | location	100
Number of distribution centers | center	12
Number of states in which entity operates | state	20
Economic interest of quality assets and operations			80%
OneWater LLC
Description of Company and Basis of Presentation [Line Items]
Ownership interest in subsidiaries	90.90%
Revenue Benchmark | Product Concentration Risk | Top Ten Brands
Description of Company and Basis of Presentation [Line Items]
Concentration risk, percentage	41.60%	43.80%
Revenue Benchmark | Supplier Concentration Risk | Malibu Boats, Inc
Description of Company and Basis of Presentation [Line Items]
Concentration risk, percentage	14.20%	15.10%

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Narrative (Details) $ in Millions	6 Months Ended
	Mar. 31, 2023 USD ($) segment	Sep. 30, 2022 USD ($)
Accounting Policies [Abstract]
Property, plant and equipment, useful life	10 years
Allowance for credit loss, current | $	$ 4.3	$ 3.7
Number of operating segments | segment	2

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Summary of Contract Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2023	Mar. 31, 2023
Contract With Customer, Liability [Roll Forward]
Beginning contract liability	$ 60,084	$ 65,460
Revenue recognized from contract liabilities included in the beginning balance	(45,025)	(58,229)
Increases due to business combinations and cash received, net of amounts recognized in revenue during the period	43,961	51,789
Ending contract liability	$ 59,020	$ 59,020

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Summary of Percentages on Timing of Revenue Recognition (Details) - Revenue from Contract with Customer Benchmark - Product Concentration Risk	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Concentration risk, percentage	100%	100%	100%	100%
Goods and services transferred at a point in time
Disaggregation of Revenue [Line Items]
Concentration risk, percentage	94.60%	95.20%	93.90%	94.30%
Goods and services transferred over time
Disaggregation of Revenue [Line Items]
Concentration risk, percentage	5.40%	4.80%	6.10%	5.70%

Acquisitions - Narrative (Detai

Acquisitions - Narrative (Details)	3 Months Ended		6 Months Ended
	Mar. 31, 2023 USD ($) property renewal_option location	Mar. 31, 2022 USD ($)	Mar. 31, 2023 USD ($) property renewal_option location	Mar. 31, 2022 USD ($)
Acquisition [Abstract]
Consideration transferred	$ 41,800,000		$ 41,800,000
Cash paid for acquisition			28,611,000	$ 288,894,000
Noncash acquisition purchase price funded by affiliate financing			10,600,000	0
Contingent consideration, liability	2,600,000		2,600,000
Minimum payout due of contingent consideration	0		0
Maximum payout due of contingent consideration	$ 0		$ 0
Number of retail locations | location	100		100
Revenue from contract with customer	$ 524,331,000	$ 442,127,000	$ 890,990,000	778,399,000
Income before income tax expense	35,001,000	55,135,000	49,813,000	83,510,000
Costs related to acquisition	$ 100,000	$ 700,000	$ 1,000,000	$ 3,700,000
Harbor View Marine Acquisition
Acquisition [Abstract]
Number of retail locations | property	2		2
Gain (loss) on sale and leaseback transaction			$ 0
Term of contract	15 years		15 years
Number of lease renewal options | renewal_option	2		2
Renewal term	5 years		5 years
Total Acquisitions
Acquisition [Abstract]
Consideration transferred	$ 41,761,000		$ 41,761,000
Revenue from contract with customer	18,000,000		26,700,000
Income before income tax expense	$ 2,200,000		$ 2,700,000

Acquisitions - Summary of Asset

Acquisitions - Summary of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Sep. 30, 2022
Summary of Assets Acquired and Liabilities Assumed
Goodwill	$ 397,469	$ 378,588
Consideration transferred	41,800
Total Acquisitions
Summary of Assets Acquired and Liabilities Assumed
Accounts receivable	188
Inventories	6,232
Prepaid expenses	73
Property and equipment	11,587
Operating lease right-of-use assets	2,952
Identifiable intangible assets	8,800
Goodwill	18,480
Accounts payable	(17)
Accrued expenses	(354)
Customer deposits	(1,000)
Notes payable - floor plan	(2,228)
Operating lease liabilities	(2,952)
Aggregate acquisition date fair value	41,761
Consideration transferred	$ 41,761

Acquisitions - Summary of Unaud

Acquisitions - Summary of Unaudited Pro Forma Results of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Business Combination and Asset Acquisition [Abstract]
Pro forma revenue	$ 524,331	$ 489,940	$ 893,694	$ 918,076
Pro forma net income	$ 27,037	$ 48,350	$ 38,579	$ 74,266

Accounts Receivable (Details)

Accounts Receivable (Details) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2023	Sep. 30, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Finance contracts maximum funding period	30 days
Total accounts receivable	$ 81,921	$ 59,126
Less – allowance for credit losses	(881)	(1,166)
Total accounts receivable, net	81,040	57,960
Contracts in transit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable	42,631	14,543
Trade accounts receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable	31,543	37,359
Manufacturer receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable	$ 7,747	$ 7,224

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Sep. 30, 2022
Inventory [Line Items]
Inventory, net	$ 593,347	$ 372,959
New vessels
Inventory [Line Items]
Inventory, net	443,885	243,090
Pre-owned vessels
Inventory [Line Items]
Inventory, net	66,522	51,607
Work in process, parts and accessories
Inventory [Line Items]
Inventory, net	$ 82,940	$ 78,262

Goodwill and Other Identifiab_3

Goodwill and Other Identifiable Intangible Assets - Summary of Changes in Goodwill and Identifiable Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Goodwill [Roll Forward]
Net balance - beginning of period			$ 378,588
Acquisition			18,480
Other adjustments			401
Net balance - end of period	$ 397,469		397,469
Intangible Assets [Abstract]
Net balance - beginning of period			306,471
Acquisitions			8,826
Accumulated amortization	(3,300)	$ (2,600)	(6,586)	$ (2,600)
Net balance - end of period	308,711		308,711
Developed Technologies
Intangible Assets [Abstract]
Net balance - beginning of period			14,274
Acquisitions			0
Accumulated amortization			(773)
Net balance - end of period	13,501		13,501
Customer Relationships
Intangible Assets [Abstract]
Net balance - beginning of period			101,230
Acquisitions			0
Accumulated amortization			(5,374)
Net balance - end of period	95,856		95,856
Domain Names
Intangible Assets [Abstract]
Net balance - beginning of period			1,970
Acquisitions			0
Accumulated amortization			(208)
Net balance - end of period	1,762		1,762
Internally Developed Software
Intangible Assets [Abstract]
Net balance - beginning of period			2,218
Acquisitions			26
Accumulated amortization			(231)
Net balance - end of period	2,013		2,013
Trade Names
Intangible Assets [Abstract]
Net balance - beginning of period			186,779
Acquisitions			8,800
Net balance - end of period	$ 195,579		$ 195,579

Goodwill and Other Identifiab_4

Goodwill and Other Identifiable Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Sep. 30, 2022
Indefinite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 3,300	$ 2,600	$ 6,586	$ 2,600
Goodwill	397,469		397,469		$ 378,588
Internally Developed Software
Indefinite-Lived Intangible Assets [Line Items]
Amortization of intangible assets			$ 231
Weighted average useful life			5 years
Dealerships
Indefinite-Lived Intangible Assets [Line Items]
Goodwill	298,500		$ 298,500		280,000
Distribution
Indefinite-Lived Intangible Assets [Line Items]
Goodwill	$ 99,000		$ 99,000		$ 98,600

Goodwill and Other Identifiab_5

Goodwill and Other Identifiable Intangible Assets - Summary of Expected Amortization Expense (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2023 (excluding the six months ended March 31, 2023)	$ 6,587
2024	13,175
2025	13,175
2026	13,175
2027	12,987
Thereafter	54,033
Total	$ 113,132

Notes Payable - Floor Plan (Det

Notes Payable - Floor Plan (Details) - Inventory Financing Facility - USD ($) $ in Millions	6 Months Ended
	Mar. 31, 2023	Feb. 14, 2023	Sep. 30, 2022
Line of Credit Facility [Abstract]
Maximum borrowing capacity		$ 550
Outstanding balance of facility	$ 485.4		$ 267.1
Line of credit facility, remaining borrowing capacity	$ 64.6		$ 232.9
Minimum | New Inventory
Line of Credit Facility [Abstract]
Credit facility, interest rate	7.49%		5.33%
Minimum | Pre-owned Inventory
Line of Credit Facility [Abstract]
Credit facility, interest rate	7.74%		5.58%
Maximum | New Inventory
Line of Credit Facility [Abstract]
Credit facility, interest rate	9.74%		7.58%
Maximum | Pre-owned Inventory
Line of Credit Facility [Abstract]
Credit facility, interest rate	9.99%		7.83%
Wells Fargo
Line of Credit Facility [Abstract]
Percentage of finance provided of vendor invoice price	100%
SOFR
Line of Credit Facility [Abstract]
Debt instrument, term of variable rate	30 days
SOFR | Minimum | New Boats
Line of Credit Facility [Abstract]
Debt instrument, variable interest rate	2.75%
SOFR | Maximum | New Boats
Line of Credit Facility [Abstract]
Debt instrument, variable interest rate	5%
Boat Rate | New Boats
Line of Credit Facility [Abstract]
Debt instrument, variable interest rate	0.25%

Long-term Debt and Line of Cr_3

Long-term Debt and Line of Credit - Narrative (Details) $ in Millions	Aug. 09, 2022 USD ($)
A&R Term Loan
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 445
A&R Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	65
Increase in revolving commitment	$ 125
A&R Credit Facility | Term SOFR | Minimum
Debt Instrument [Line Items]
Debt instrument, variable interest rate	1.75%
A&R Credit Facility | Term SOFR | Maximum
Debt Instrument [Line Items]
Debt instrument, variable interest rate	2.75%
A&R Credit Facility | Letter of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 5
A&R Credit Facility | Swingline Loans
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 5

Long-term Debt and Line of Cr_4

Long-term Debt and Line of Credit - Summary of Long-term Debt and Line of Credit (Details) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2023	Sep. 30, 2022
Debt Instrument [Line Items]
Total debt outstanding	$ 471,534	$ 452,355
Less current portion (net of debt issuance costs)	(23,919)	(21,642)
Less unamortized portion of debt issuance costs	(8,359)	(9,551)
Long-term debt, net of current portion and unamortized debt issuance costs	439,256	421,162
Term note payable to Truist Bank, secured and bearing interest at 6.98% at March 31, 2023 and 5.31% at September 30, 2022. The note requires quarterly principal payments commencing on December 31, 2022 and maturing with a full repayment on August 9, 2027
Debt Instrument [Line Items]
Total debt outstanding	$ 433,875	$ 445,000
Debt instrument, interest rate, stated percentage	6.98%	5.31%
Revolving note payable for an amount up to $65.0 million to Truist Bank, secured and bearing interest at 7.65% at March 31, 2023. The note requires full repayment on August 9, 2027
Debt Instrument [Line Items]
Total debt outstanding	$ 30,000	$ 0
Debt instrument, interest rate, stated percentage	7.65%
Line of credit facility, maximum borrowing capacity	$ 65,000
Notes payable to commercial vehicle lenders secured by the value of the vehicles bearing interest at rates ranging from 0.0% to 8.4% per annum. The notes require monthly installment payments of principal and interest ranging from $100 to $5,600 through July 2028
Debt Instrument [Line Items]
Total debt outstanding	$ 4,477	4,173
Notes payable to commercial vehicle lenders secured by the value of the vehicles bearing interest at rates ranging from 0.0% to 8.4% per annum. The notes require monthly installment payments of principal and interest ranging from $100 to $5,600 through July 2028 | Minimum
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	0%
Debt instrument, periodic payment	$ 100
Notes payable to commercial vehicle lenders secured by the value of the vehicles bearing interest at rates ranging from 0.0% to 8.4% per annum. The notes require monthly installment payments of principal and interest ranging from $100 to $5,600 through July 2028 | Maximum
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	8.40%
Debt instrument, periodic payment	$ 5,600
Note payable to Tom George Yacht Group, unsecured and bearing interest at 5.5% per annum. The note requires monthly interest payments, with a balloon payment of principal due on December 1, 2023
Debt Instrument [Line Items]
Total debt outstanding	$ 2,056	2,056
Debt instrument, interest rate, stated percentage	5.50%
Note payable to Norfolk Marine Company, unsecured and bearing interest at 4.0% per annum. The note requires quarterly interest payments, with a balloon payment of principal due on December 1, 2024
Debt Instrument [Line Items]
Total debt outstanding	$ 1,126	$ 1,126
Debt instrument, interest rate, stated percentage	4%

Stockholders' and Members' Eq_3

Stockholders' and Members' Equity - Narrative (Details) $ / shares in Units, $ in Thousands				3 Months Ended		6 Months Ended		12 Months Ended
	Oct. 02, 2023 intallment shares	Oct. 01, 2023 intallment shares	Feb. 23, 2021 shares	Mar. 31, 2023 USD ($) $ / shares shares	Mar. 31, 2022 USD ($)	Mar. 31, 2023 USD ($) $ / shares shares	Mar. 31, 2022 USD ($) shares	Mar. 31, 2023 USD ($) $ / shares shares	Mar. 30, 2022 USD ($)
Share-Based Payment Arrangement [Abstract]
Percentage of expected performance targets to be achieved target award				100%		100%		100%
Authorized amount | $									$ 50,000
Repurchase and retirement of shares amount | $				$ 1,579
Stock repurchase program, remaining authorized repurchase amount | $				48,100		$ 48,100		$ 48,100
Equity-based awards | $						5,063	$ 4,813
Employee Stock Purchase Plan
Share-Based Payment Arrangement [Abstract]
Equity-based awards | $				200		400
Stock to be purchased under ESPP | $						$ 500
Performance Shares
Share-Based Payment Arrangement [Abstract]
Awarded (in shares) | shares						83,036
Percentage of target award granted						100%
Number of shares of common stock consisted in each unit (in shares) | shares						1
Share-based payment arrangement, expense | $				1,100	$ 1,700	$ 2,200	$ 2,700
Performance Shares | Forecast
Share-Based Payment Arrangement [Abstract]
Awarded (in shares) | shares	69,748	13,288
Number of equal annual installments for vesting | intallment	3
Time-Based Restricted Stock Units
Share-Based Payment Arrangement [Abstract]
Awarded (in shares) | shares							133,735
Time-Based Restricted Stock Units | Forecast
Share-Based Payment Arrangement [Abstract]
Awarded (in shares) | shares	111,185	22,550
Number of equal annual installments for vesting | intallment		3
Restricted Stock Units
Share-Based Payment Arrangement [Abstract]
Awarded (in shares) | shares						216,771,000
Share-based payment arrangement, expense | $				2,300	$ 2,700	$ 4,700	$ 4,800
Nonvested award | $				$ 8,100		$ 8,100		$ 8,100
Cost not yet recognized, period for recognition						1 year 3 months 18 days
Employee Stock Purchase Plan
Share-Based Payment Arrangement [Abstract]
Shares issued as part of employee stock purchase plan (in shares) | shares						43,692
Shares issued (in shares) | $ / shares				$ 24.31		$ 24.31		$ 24.31
Class A Common Stock
Share-Based Payment Arrangement [Abstract]
Capital shares reserved for future issuance (in shares) | shares				1,573,446		1,573,446		1,573,446
Repurchased and retired shares (in shares) | shares						63,353		73,487
Repurchase and retirement of shares amount | $						$ 1,600		$ 1,900
Percentage of outstanding shares, ESPP issuance			1%
Class A Common Stock | Maximum
Share-Based Payment Arrangement [Abstract]
Shares issued as part of employee stock purchase plan (in shares) | shares			449,257

Stockholders' and Members' Eq_4

Stockholders' and Members' Equity - Summary of Restricted Stock Units Activity (Details) - Restricted Stock Units	6 Months Ended
	Mar. 31, 2023 $ / shares shares
Number of Shares
Beginning balance (in shares) | shares	559,793,000
Awarded (in shares) | shares	216,771,000
Vested (in shares) | shares	(151,393,000)
Forfeited (in shares) | shares	(1,000,000)
Ending balance (in shares) | shares	624,171,000
Weighted Average Grant Date Fair Value
Beginning balance (in dollars per share) | $ / shares	$ 28.01
Awarded (in dollars per shares) | $ / shares	30.08
Vested (in dollars per shares) | $ / shares	22.61
Forfeited (in dollars per shares) | $ / shares	40.21
Ending balance (in dollars per share) | $ / shares	$ 30.02

Stockholders' and Members' Eq_5

Stockholders' and Members' Equity - Summary of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Numerator:
Net income attributable to OneWater Inc.	$ 22,804	$ 36,297	$ 31,704	$ 56,316
Class A Common Stock
Denominator:
Weighted-average number of unrestricted outstanding common shares used to calculate basic net income per share (in shares)	14,340	13,864	14,318	13,619
Effect of dilutive securities:
Diluted weighted-average shares of Class A common stock outstanding used to calculate diluted earnings per share (in shares)	14,655	14,272	14,612	14,017
Earnings per share of Class A common stock - basic (in dollars per share)	$ 1.59	$ 2.62	$ 2.21	$ 4.14
Earnings per share of Class A common stock - diluted (in dollars per share)	$ 1.56	$ 2.54	$ 2.17	$ 4.02
Class A Common Stock | Employee Stock Purchase Plan
Effect of dilutive securities:
Restricted stock unit and employee stock purchase plan (in shares)	0	0	3	0
Class A Common Stock | Restricted Stock Units
Effect of dilutive securities:
Restricted stock unit and employee stock purchase plan (in shares)	315	408	291	398

Stockholders' and Members' Eq_6

Stockholders' and Members' Equity - Summary of Antidilutive Securities (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted weighted average shares (in shares)	1,720	1,629	1,752	1,842
Restricted Stock Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted weighted average shares (in shares)	290	199	322	217
Class B Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted weighted average shares (in shares)	1,430	1,430	1,430	1,625

Stockholders' and Members' Eq_7

Stockholders' and Members' Equity - Summary of Employee Stock Purchase Plan (Details)	6 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Dividend yield	0%
Risk-free interest rate	4.80%
Volatility	45.60%
Expected life (in years)	6 months

Fair Value Measures and Disclos

Fair Value Measures and Disclosures - Summary of Financial Assets and Liabilities Measured at Fair Value (Details) - Reported Value Measurement - USD ($) $ in Thousands	Mar. 31, 2023	Sep. 30, 2022
Assets:
Investment in Equity Securities	$ 492	$ 772
Liabilities:
Contingent Consideration	26,275	37,402
Level 1
Assets:
Investment in Equity Securities	492	772
Liabilities:
Contingent Consideration	0	0
Level 2
Assets:
Investment in Equity Securities	0	0
Liabilities:
Contingent Consideration	0	0
Level 3
Assets:
Investment in Equity Securities	0	0
Liabilities:
Contingent Consideration	$ 26,275	$ 37,402

Fair Value Measures and Discl_2

Fair Value Measures and Disclosures - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unrealized gain (loss)	$ 20	$ 0	$ 280	$ 0
Other Assets
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Equity securities, FV-NI, noncurrent	$ 500		$ 500

Fair Value Measures and Discl_3

Fair Value Measures and Disclosures - Summary of Unrealized Losses Recognized Related to Equity Securities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Fair Value Disclosures [Abstract]
Net losses recognized during the period on equity securities	$ 20	$ 0	$ 280	$ 0
Less net losses recognized during the period on equity securities sold during the period	0		0
Unrealized losses recognized during the reporting period on equity securities still held at the reporting date	$ 20		$ 280

Fair Value Measures and Discl_4

Fair Value Measures and Disclosures - Summary of Changes in Fair Value of Contingent Consideration (Details) - Liability - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2023	Mar. 31, 2023
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 32,817	$ 37,402
Additions from acquisitions	0	2,550
Settlement of contingent consideration	(8,278)	(14,004)
Change in fair value, including accretion	1,736	327
Ending balance	$ 26,275	$ 26,275

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Effective income tax rate reconciliation (in percent)	22.80%	23.20%	22.80%	21.20%
Tax receivable agreement liability	$ 46.4		$ 46.4		$ 46.4
Percentage of net cash savings			85%

Leases (Details)

Leases (Details)	6 Months Ended
	Mar. 31, 2023
Leases [Abstract]
Lessor, operating lease, renewal term	1 year
Extended renewal term of lease	10 years

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Sep. 30, 2022
Related Party Transactions [Abstract]
Accounts payable, related parties (less than in 2023)	$ 0.1		$ 0.1		$ 2
Accounts receivable, related parties	1		1		$ 0.2
Affiliated Entity
Related Party Transactions [Abstract]
Purchase of inventories	26	$ 25	47.4	$ 58.2
Related party transaction, expenses from transactions with related party	0.7	0.6	1.1	1.3
Affiliated Entities and Individuals
Related Party Transactions [Abstract]
Revenue from related parties (less than in three months ended 2023)	0.1	4.8	1	4.9
Costs and expenses, related party	$ 0.1	$ 0	$ 0.1	$ 0.1

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)	Mar. 31, 2023 USD ($) segment	Mar. 31, 2022 USD ($)	Sep. 30, 2022 USD ($)
Segment Information [Abstract]
Number of reportable segments | segment			2
Revenue	$ 524,331	$ 442,127	$ 890,990	$ 778,399
Income (loss) from operations	48,890	59,389	75,426	90,718
Depreciation and amortization	6,360		12,542	6,541
Transaction costs	241	776	1,571	3,821
Change in fair value of contingent consideration	1,736	$ 2,158	327	$ 7,904
Total assets	1,770,451		1,770,451		$ 1,497,428
Dealerships
Segment Information [Abstract]
Revenue	478,348		805,121
Income (loss) from operations	48,386		78,239
Depreciation and amortization	2,564		4,938
Transaction costs	241		1,423
Change in fair value of contingent consideration	1,626		83
Total assets	1,361,097		1,361,097
Distribution
Segment Information [Abstract]
Revenue	45,983		85,869
Income (loss) from operations	504		(2,813)
Depreciation and amortization	3,796		7,604
Transaction costs	0		148
Change in fair value of contingent consideration	110		244
Total assets	$ 409,354		$ 409,354