Shares of Vision Marine Technologies Inc. (VMAR) are surging in premarket trading Tuesday after the company reported third-quarter results that showed real progress. The stock was up about 36% at $1.92 as of early trading.

The big headline: Vision Marine delivered 27% sequential revenue growth in its fiscal third quarter. Revenue hit $18.4 million, up from $14.5 million in the prior quarter. Management noted that the sequential comparison is more meaningful this time because Nautical Ventures Group was included in both periods. For the first nine months of fiscal 2026, total revenue came in at $48.6 million.

But the revenue number isn't the only thing catching investors' eyes. The company also reported a gross profit of $11.8 million for the first nine months, with a gross margin of 24.3%. That's a huge turnaround from a year earlier, when the company was reporting a gross loss. In other words, Vision Marine is now making money on each boat it sells, not losing it.

Even more important for a company that has historically burned cash: operating cash flow turned positive at $2.4 million. That's a big deal for a small-cap company in the capital-intensive electric boat business. The improvement came from better working capital management and lower inventory levels.

Speaking of inventory, it fell about 44% to $20.7 million. And floorplan financing — essentially debt used to finance dealer inventory — dropped roughly 69% to $10.2 million. That suggests the company is managing its balance sheet more tightly and not relying as heavily on debt to move boats.

So how does Vision Marine make money? The company designs and manufactures electric outboard powertrain systems and electric power boats. It also rents electric boats through a subsidiary. Its lineup includes models like the Bruce 22, Fantail 217, VX Electric Pontoon, Volt 180, and Phantom — all aimed at the recreational boating market. The company operates in two segments: sales of electric boats and rentals of electric boats, with the U.S. generating a substantial portion of revenue.

Tuesday's move suggests the market is rewarding evidence of improving commercial execution — higher revenue and positive gross profit — alongside tighter capital management. The stock is still trading near its 52-week low of $1.00, so there's a long way to go, but for now, investors are liking what they see.