RideNow Group Q3 2026 Earnings Results & Report

RideNow Group EPS Results

• Actual EPS: -$0.36
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A
• EPS Beat Rate: 2 of last 8 quarters

RideNow Group Revenue Results

• Actual Revenue: $244.30 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

RumbleOn, Inc. primarily operates as a powersports retailer in the United States. It operates in two segments, Powersports and Vehicle Transportation Services. The Powersports segment provides new and pre-owned motorcycles, all-terrain vehicles, utility terrain or side-by-side vehicles, personal watercraft, snowmobiles, and other powersports products. It also offers parts, apparel, accessories, finance and insurance products and services, and aftermarket products, as well as repair and maintenance services. The Vehicle Transportation Services segment provides asset-light transportation brokerage services facilitating automobile transportation. The company was formerly known as Smart Server, Inc. and changed its name to RumbleOn, Inc. in February 2017. The company was incorporated in 2013 and is based in Irving, Texas.

RideNow Group Q3 2026 Earnings Call Transcript

Key Takeaways

• Negative Sentiment: RideNow attributed much of its Q3 downturn to its August rollout of Clear Price: same-store retail units fell 10.9% year over year, and Adjusted EBITDA dropped to $5.3 million from $12.3 million. Management estimates Clear Price accounted for about half the unit decline and $4 million of the $7 million EBITDA decrease.
• Negative Sentiment: Management cited macroeconomic pressure on discretionary purchases, alongside lower new- and used-vehicle gross margins. New inventory was slightly above five months of supply, though the company expects it to return to target levels by the end of Q1.
• Positive Sentiment: RideNow expects Q4 Adjusted EBITDA to exceed Q3, despite the typical seasonal pattern, and said recent monthly unit trends have been closer to mid- to low-single-digit declines year over year. Management believes broader adoption of transparent pricing could reduce the competitive disadvantage of its Clear Price policy.
• Positive Sentiment: Cost actions taken during the quarter are expected to reduce annualized expenses by $4.6 million, with management targeting an additional $10 million of permanent run-rate savings by the end of 2027 through operational changes and expanded AI use.
• Positive Sentiment: RideNow refinanced its $220 million Oaktree term loan with a facility maturing in September 2031, removing restricted milestones and avoiding further stock dilution. The company ended Q3 with $149.4 million in total available liquidity and said it is in advanced discussions for an additional asset-backed lending facility, though completion is not assured.

Presentation

[Operator]

This call is being recorded on Tuesday, November 10th, 2026. I would now like to turn the conference over to Jerene Makia, Vice President of Finance. Please go ahead.

[Jerene Makia, VP of Finance at RideNow]

Thank you, operator. Good afternoon, everyone, and thank you for joining us for RideNow's third quarter 2026 earnings conference call. Joining me on the call today are Michael Quartieri, RideNow's Chairman, Chief Executive Officer, and President, and Josh Barsetti, RideNow's Executive Vice President and Chief Financial Officer. Our third quarter results are detailed in the press release issued this afternoon, and supplemental information will be available in our Form 10-Q once filed.

[Jerene Makia, VP of Finance at RideNow]

Before we begin, I would like to remind you that comments made by management during this conference call may be and contain forward-looking statements, including but not limited to RideNow's market opportunities, Clear Price pricing strategy, and future financial results. All forward-looking statements involve risks and uncertainties which could affect RideNow's actual results and cause actual results to differ materially from forward-looking statements made by or on behalf of RideNow.

[Jerene Makia, VP of Finance at RideNow]

A discussion of material risks and important factors that could affect our actual results can be found in our filings with the SEC, which are available on our investor relations website and at sec.gov. This conference call also contains time-sensitive information that is accurate only as of the date of this live broadcast, Tuesday, November 10th, 2026. RideNow assumes no obligation to revise or update any forward-looking statements, whether written or oral, to reflect events or circumstances after the date of this conference call, except as required by law. Also, the following discussion contains non-GAAP financial measures. For a reconciliation of these non-GAAP financial measures to the most direct comparable GAAP measures, please refer to our earnings release furnished today and available on our investor relations website. Now, I'll turn the call over to Michael Quartieri.

[Michael Quartieri, Chairman, CEO, and President at RideNow]

Good afternoon, everyone, and thank you for joining us for RideNow's third quarter 2026 earnings call. Our top line and Adjusted EBITDA contraction this quarter was driven primarily by our August company-wide adoption of our RideNow Clear Price strategy, which we proactively introduced to align with recent FTC guidance and enforcement priorities regarding vehicle pricing and fee transparency. Transparent, all-in pricing means the price a customer sees in an advertisement is the price they pay, excluding tax, title, and license, with no hidden or unexpected fees tacked on later. Dealerships that continue to exclude mandatory fees from advertised prices may advertise artificially deflated prices and then add ancillary fees once the consumer is in the door.

[Michael Quartieri, Chairman, CEO, and President at RideNow]

They may include disclaimers such as, "Prices exclude freight, prep, setup, and doc fees," and for used inventory, "Prices exclude a reconditioning fee or doc fee." As the industry's leading powersports dealership group, we chose to be proactive and were among the first to adopt fully compliant, transparent pricing starting in early August across our 46 rooftops. While the widespread adoption of the industry has been slow to date, as regulatory enforcement across powersports retailers broadens, we expect these impacts to normalize as transparent pricing practices become more widespread across the industry. Certain dealerships that we compete with have made the change in recent weeks, while others have chosen to run the risk and maintain their historical pricing practices.

[Michael Quartieri, Chairman, CEO, and President at RideNow]

While certainly painful in Q3, importantly, we believe that this was the right move for the company as it provides us the opportunity to improve customer trust and transparency, lowering friction during the buying process, which will ultimately improve our position as the dealership group of choice in our core markets. Another contributing factor which affected our Q3 results is the general macro environment. Rising interest rates, high fuel prices, and inflationary pressures are weighing on consumer confidence and sentiment, thus driving a noticeable pullback in consumer discretionary spending. Over the last quarter, these sustained macro headwinds have forced buyers to approach big-ticket, non-essential purchases with a high level of caution. That being said, we've seen our business rebound somewhat here in Q4, as we believe our customers have become more aware of our RideNow Clear Price.

[Michael Quartieri, Chairman, CEO, and President at RideNow]

At the current time, we expect Q4 Adjusted EBITDA to come in ahead of Q3, bucking the typical seasonal trend of our business. Same-store retail volume, as reported, was down 10.9% compared to last year's third quarter. We estimate the impact of our Clear Price adoption accounted for approximately half of this decline. Adjusted EBITDA for the quarter was $5.3 million compared to $12.3 million in Q3 of last year. Of this $7 million decline, we estimate approximately $4 million was attributable to the Clear Price adoption.

[Michael Quartieri, Chairman, CEO, and President at RideNow]

Regardless of the environment, our philosophy remains simple: control what we can control within our four walls. We acted swiftly during the quarter, accelerating actions to reduce costs throughout our dealerships, which reduced costs by $4.6 million on an annualized basis. We remain diligent in our operational back office transformation efforts, which are being accelerated with our expanded use of AI tools.

[Michael Quartieri, Chairman, CEO, and President at RideNow]

We expect these actions to benefit us here in the current quarter and through 2027. We anticipate these efforts will generate an incremental $10 million of run rate permanent savings as we exit 2027. As we navigate macro headwinds, we remain focused on accretive acquisitions. To that end, during the quarter, we completed an accretive tuck-in acquisition for our newly repositioned Tallahassee store, adding Can-Am and Sea-Doo to the product line.

[Michael Quartieri, Chairman, CEO, and President at RideNow]

The structural changes we're making today, from Clear Price to the structural cost reductions and to our debt refinancing, we're building a leaner, more resilient business. When discretionary demand rebounds and the broader powersports cycle returns to positive, we stand to benefit from the substantial and growing operation leverage inherent in our dealership model. I want to thank our entire team across the organization for their dedication and resilience. With that, I'll turn the call over to Josh for a detailed review of our third quarter results.

[Josh Barsetti, EVP and CFO at RideNow]

Thanks, Michael Quartieri, and good afternoon, everyone. I'll start by reviewing our financial results for the third quarter of 2026, followed by an overview of our balance sheet. For the quarter, same-store sales, which excludes the stores permanently closed from September 30th, 2025 through September 30th, 2026, and any fleet-related units, generated total revenue of $241.4 million compared to $262 million in the prior year quarter. During the quarter, we sold 12,182 new and pre-owned units, down 1,486 units or 10.9% from the same quarter last year. Total new retail unit sales were 8,127, down 1,037 units or 11.3% compared to Q3 of last year. Pre-owned retail units totaled 4,055, down 449 units or 10%. New unit gross margins decreased to 13.1% for the quarter compared to 13.8% for the same quarter last year.

[Josh Barsetti, EVP and CFO at RideNow]

Pre-owned gross margins decreased from 15.7% in last year's third quarter to 15.4% in the third quarter of the current year, driven by shifts in product mix to lower-margin products during the current quarter. Total same-store gross profit was $65.8 million this year compared to $72 million in the prior year, an 8.6% decrease. On a consolidated basis, Adjusted EBITDA decreased to $5.3 million from $12.3 million in the third quarter of 2025. Adjusted SG&A expenses decreased $3.8 million to $57.7 million or 88.1% of gross profit compared to $61.5 million or 80.9% of gross profit in the third quarter of the prior year. Our fixed operations business, consisting of parts, service, and accessories, delivered $47.1 million in revenue and $22.3 million in gross profit. Additionally, our finance and insurance teams delivered $21.7 million in gross profit.

[Josh Barsetti, EVP and CFO at RideNow]

For the nine months ended September 30th, same-store revenue was up $18.1 million-$791.9 million as compared to $773.8 million in the prior year period. Gross profit was $220.4 million in the first nine months of the year compared to $217.2 million in the prior year period. Turning to the balance sheet, we ended the quarter with $47.6 million in total cash, inclusive of restricted cash. Additionally, on September 25th, we refinanced our Oaktree term loan with a $220 million facility with affiliates of Centerbridge. The new debt matures in September of 2031 and bears interest at term SOFR with a floor of 3%+ a margin of 8.375%. As part of the refinance, we recognized $5.7 million as a loss on extinguishment of debt in our consolidated financial statements.

[Josh Barsetti, EVP and CFO at RideNow]

This agreement provides us with the runway to execute our strategic initiatives, removes the restricted milestones in our prior credit agreement, and allowed us to refinance our debt without further dilution of our stock. Additionally, we're currently in advanced discussions of closing on an asset-backed lending facility with Wells Fargo that will allow for further flexibility as we continue to reshape the business. Although there can be no assurance the company will enter into the ABL facility on similar terms or at all. At the end of the quarter, our availability under short-term revolving floor plan credit facilities totaled approximately $101.8 million, and total available liquidity, defined as total cash plus availability under floor plan credit facilities, totaled $149.4 million at the end of the quarter. Additionally, non-vehicle net debt was $203.7 million.

[Josh Barsetti, EVP and CFO at RideNow]

Cash outflows from operating activities was $41.7 million for the nine months ended September 30th, 2026, and adjusted free cash flow was $14.2 million compared to $5.2 million for the same period in the prior year. With that, we'd like to begin the question-and-answer session. I will turn the call back over to the operator now to open the lines.

[Operator]

Thank you. Ladies and gentlemen, we'll now begin the question-and-answer session. Should you have a question, please press the star key followed by the number one on your touchtone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press the star key followed by the number two. One moment, please, while we assemble the queue. Your first question comes from Craig Kennison of Baird. Please go ahead.

[Craig Kennison, Analyst at Baird]

Hey, good afternoon. Thanks for taking my question. I wanted to ask about Clear Price. Are you sure, or how can you be sure that you lost share? In other words, consumers just saw the price and went somewhere else, versus maybe deferred a purchase and could come back once they discover the price is not really different?

[Michael Quartieri, Chairman, CEO, and President at RideNow]

Look, good question. I think the way we took an approach of it's we looked at the last four months of sales and looked at those year-over-year changes. When we adopted in early August, that month's operating results were materially down from the prior year. When we look at July, September, and October, we're seeing what we think is a more normalized operating environment, which is somewhere around the mid to low single-digit decline from a unit volume year over year at this point.

[Craig Kennison, Analyst at Baird]

Got it. What percentage of your competition today do you think has evolved towards more of a Clear Price model?

[Michael Quartieri, Chairman, CEO, and President at RideNow]

It's really functional by region. Here in the Phoenix market, the vast majority of our direct competitors are FTC compliant, and we see that as we price compare across all of the competitors on a daily, if not every other day basis. When you look broader across the industry in the, call it, more Texas area, in the Florida area, maybe back on the East Coast where our two other hubs are, very little amount of those dealerships are actually FTC compliant.

[Craig Kennison, Analyst at Baird]

Thank you. Maybe one more question. Does Clear Price mean no haggle, or is it still a starting point for negotiation with the customer?

[Michael Quartieri, Chairman, CEO, and President at RideNow]

It's still a starting point. What it doesn't allow the dealership to do is to put an MSRP out there that is strictly what the OEM is telling you, and then get you in to then charge you on freight, setup, doc fees, which could be adding a couple of additional thousand dollars to that unit.

[Craig Kennison, Analyst at Baird]

Yeah, I was going to ask, what would you say the general either percentage impact or dollar impact of moving to Clear Price when you see it online? How does that price compare?

[Michael Quartieri, Chairman, CEO, and President at RideNow]

Look, I'll give it to you in these terms. When we're looking at our gross profit margins right now, we're seeing about a 2% overall decline, which is the combination of two factors, and this is where it gets a little bit difficult to bifurcate between just Clear Price and the environment that we're in. Because of this macro headwinds and slowdown that you saw in Q3, it happened unfortunately right at the time when we're rolling off the 2026 product into the 2027 product models. The 2026 product models are no longer MAP protected. You have inventory that's slightly above, or I should say at elevated levels, which is no longer then MAP protected, so dealerships are moving that inventory to make room for 2027, which is having an unfortunate negative impact on the gross margin.

[Michael Quartieri, Chairman, CEO, and President at RideNow]

That then coupled with competitors that are not FTC compliant, that are showing these artificially deflated prices just contributes to that. I think what will happen is over the course of the next, I'm going to say six months to nine months or so, I think eventually the FTC is going to nail someone, and we just wanted to make sure that whoever that person was that got nailed wasn't us. As the largest dealership group in North America, or I should say in the U.S. for sure, and as the one publicly traded one, that was a target that we just weren't going to allow to be on our chest.

[Craig Kennison, Analyst at Baird]

Yeah, that makes sense. Well, thank you very much.

[Michael Quartieri, Chairman, CEO, and President at RideNow]

You got it. Thanks for the questions.

[Operator]

The next question comes from Eric Wold of Texas Capital. Please go ahead.

[Eric Wold, Analyst at Texas Capital]

Thanks. Good afternoon. Couple questions, I guess. First off, maybe give us a sense of the health of your inventory balance of new vehicles right now, how you feel that's positioned heading into year end, kind of what the promotional help environment looks like from OEM right now.

[Josh Barsetti, EVP and CFO at RideNow]

Yeah. Currently, we are a little elevated on our new, a little bit over five months. As you can imagine, with the sales volume decline we saw in August, that is partially the reason for that elevated inventory. The OEMs are increasing their support and promotions associated with that inventory. They want the 2027 product out there just as much as everybody else does. There is help there.

[Josh Barsetti, EVP and CFO at RideNow]

We have taken our own internal steps to make sure that our ordering is in line and that our overall inventory remains where we want it. Even though it's elevated a little bit right now, we are expecting that by the end of Q1, we should be back in line with where we need to be and ready for the selling season that comes after that. On the used side, we're fine. It's new where we're a little bit elevated at this point.

[Eric Wold, Analyst at Texas Capital]

Perfect. The question was kind of around the used. What does the environment look like right now to get your hands on used vehicles, premium vehicles that you want in terms of competitive competition for those vehicles? Is that inventory balance kind of where you're, where you want to be right now in the next year? Or you still think you need to bulk that up a little bit into the spring selling season?

[Josh Barsetti, EVP and CFO at RideNow]

Yeah, I do think we need to bulk it up a little bit as we head into the selling season. We're good with where we are now, but we're definitely looking to increase it. I would say that right now, it's difficult to find good quality used inventory, and I think that's the same across the whole industry at this point. We do have, as you all are aware, our cash offer tool and some other unique ways to source that inventory. We're looking to take advantage of that as we head into this off-season here to bulk up where we need to and get good quality used product that we can turn quickly as we enter the selling season.

[Eric Wold, Analyst at Texas Capital]

Perfect. Thank you.

[Operator]

There are no further questions at this time. Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect.

Participants

Analysts

• Jerene Makia, VP of Finance at RideNow
• Michael Quartieri, Chairman, CEO, and President at RideNow
• Josh Barsetti, EVP and CFO at RideNow
• Craig Kennison, Analyst at Baird
• Eric Wold, Analyst at Texas Capital