RideNow Group Q4 2025 Earnings Report

RideNow Group EPS Results

• Actual EPS: -$0.17
• Consensus EPS: -$0.16
• Beat/Miss: Missed by -$0.01
• One Year Ago EPS: N/A

RideNow Group Revenue Results

• Actual Revenue: $256.90 million
• Expected Revenue: $267.08 million
• Beat/Miss: Missed by -$10.18 million
• YoY Revenue Growth: N/A

RideNow Group Announcement Details

• Quarter: Q4 2025
• Date: 3/9/2026
• Time: After Market Closes
• Conference Call Date: Monday, March 9, 2026
• Conference Call Time: 4:30PM ET

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 Q4 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Adjusted EBITDA jumped to $9.7 million in Q4 (up 341% YoY) and full‑year adjusted EBITDA was $46.2 million (up 40.4% YoY), driven by cost reductions and operational execution.
• Negative Sentiment: Management shut down Wholesale Express effective end of December, removing the transportation business and reducing total revenue year‑over‑year.
• Positive Sentiment: On a same‑store basis (excluding closed locations), Q4 powersports revenue rose 6.3%, gross profit increased 13.8%, and unit sales grew, marking multi‑quarter same‑store improvement.
• Positive Sentiment: Profitability per unit improved — new unit gross margin to 13.2% (from 10.8%) and pre‑owned to 14.4%, with higher GPU in fixed ops and F&I businesses.
• Negative Sentiment: Liquidity shows $42.9M cash and total available liquidity of ~$152.6M, but non‑vehicle net debt is $189.3M and free cash flow fell to $10.3M for 2025 (vs. $97.4M prior year), reflecting one‑time items and weaker operating cash conversion.

Presentation

[Operator]

Good afternoon, ladies and gentlemen, and welcome to the RideNow Group, Inc. fourth quarter 2025 earnings conference call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Monday, March 9, 2026. I would now like to turn the conference over to Jerene Makia, VP of Finance. Please go ahead, sir.

[Jerene Makia, VP of Finance at RideNow Group]

Thank you, operator. Good afternoon, everyone, and thank you for joining us for RideNow's fourth quarter and full year 2025 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 Chief Financial Officer. Our Q4 and full year results are detailed in the press release issued this afternoon, and supplemental information will be available in our Form 10-K once filed. Before we begin, I would like to remind you that comments made by management during this conference call may contain forward-looking statements including, but not limited to, RideNow's market opportunities 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 Group]

A discussion of material risks and important factors that could affect our 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, Monday, March 9th, 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, please refer to our earnings release issued earlier today. Now, I'll turn the call over to Michael Quartieri.

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

Good afternoon, everyone, and thank you for joining us for RideNow's fourth quarter 2025 earnings call. Well, what a difference a year makes. Over this past year, we've made tremendous progress in our turnaround, and we are only scratching the surface of our full potential. You've heard me state on every call a common theme of remaining laser-focused on improving what we can control within the four walls of our business. Getting the right people in the right place at the right time, doing the right actions. Focusing on execution and continuous improvement across all aspects of our operations across the stores and our back-office support center is driving the momentum in our results. This momentum has been building in our business throughout the year. In Q2, we generated year-over-year improvement in adjusted EBITDA.

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

In Q3 and now again in Q4, we delivered year-over-year improvement in gross profit and adjusted EBITDA. All of this was achieved despite the nearly complete loss of our transportation business, Wholesale Express. Effective as of the end of December, we've shut down all operations at Wholesale Express to focus all of our attention and effort on the powersports segment. We expect this momentum to continue in Q1 as the macro environment continues to improve, which will help position us for a potential refinancing of our term loan in the near future. Our year-over-year improvement in our top-line metrics in powersports, coupled with a maniacal focus on driving waste out of our operations, led to $9.7 million in adjusted EBITDA for Q4, a year-over-year improvement of over $7.5 million.

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

Our tactical plan, balanced on near-term initiatives to improve financial performance and structural changes to reset the strategic direction of the company, is continuing to drive long-term value creation for our shareholders. The near-term initiatives of getting the right leadership in place, reevaluating the cost structure, and reinstalling a disciplined approach to store performance are continuing to progress and are positioning us to generate even further improvement in our operating results as the sales cycle continues to turn positive. During Q4, we took further action with our store portfolio. We sold our two locations in Southern California. In Tucson, we consolidated our Indian store into our neighboring RideNow location and consolidated our two Harley-Davidson locations to under one roof.

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

As a result of the disposition of our two Southern California locations, coupled with the closures of our stores in Sturgis, Cincinnati, and our used-only store in Houston earlier in the year, we have enhanced our financial disclosures to provide same-store sales data, which Josh will take you through shortly. Our team is aligned with clear goals, performance metrics, and a culture of accountability. My conviction in our ability to execute and deliver improved results continues to grow each day. We are poised to build from our momentum to deliver even more adjusted EBITDA and increase free cash flow, which we intend to deploy with a discipline of an owner-oriented company. As we proceed into 2026, we are well-positioned to return to growth through acquisition, which, coupled with our focus on operational excellence, is the value creation engine that RideNow was founded upon.

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

With that, I'll turn the call over to Josh for a more detailed discussion of the Q4 and full year results.

[Joshua Barsetti, CFO at RideNow Group]

Thanks, Mike. Good afternoon, everyone. I'll start by reviewing our financial results for the fourth quarter and full year 2025, followed by an overview of our balance sheet. During the quarter, we generated total revenue of $256.9 million, compared to $269.6 million in the prior year quarter. This decrease was driven by the expected reduction of our Wholesale Express business, which, as Mike mentioned, was wound down at the end of the quarter. Excluding Wholesale Express, our revenue was flat year-over-year. I'm also happy to report that our adjusted EBITDA increased 341% to $9.7 million, up from $2.2 million in last year's fourth quarter.

[Joshua Barsetti, CFO at RideNow Group]

Adjusted SG&A expenses were $59.9 million or 84.5% of gross profit, compared to $62.3 million or 92.3% of gross profit in the same quarter last year. During the quarter, we sold 15,642 major units, up 294 units or 1.9% from the same quarter last year. Total new powersports major unit sales were 9,924, down 293 units or 2.9% compared to Q4 of last year. Pre-owned unit sales totaled 4,125, up 200 units or 5.1%.

[Joshua Barsetti, CFO at RideNow Group]

Higher total powersports unit sales, coupled with continued improvement in revenue across each of our revenue categories, led to a $6.5 million improvement in powersports gross profit dollars, which totaled $70.7 million during the fourth quarter. New unit gross margins improved to 13.2% for the quarter, compared to 10.8% for the same quarter last year. Pre-owned gross margins also improved from 12.3% in last year's fourth quarter to 14.4% in the fourth quarter of the current year. Our fixed operations businesses, consisting of parts, service, and accessories, delivered $48.5 million in revenue and $22.7 million in gross profit. GPU for our fixed operations business was $1,615, up $60 compared to the fourth quarter of last year.

[Joshua Barsetti, CFO at RideNow Group]

Our finance and insurance teams delivered $24.1 million in revenue or GPU of $1,715, up $117 compared to $1,598 in the prior year's quarter. As Mike mentioned, as a result of the store closures during 2025, for the fourth quarter and going forward, we will report certain same-store sales metrics, including same-store revenue, gross profit, and unit volume for our powersports segment. Since this is the first time we have pre-presented information on a same-store basis, we included a supplemental table in the earnings release to provide quarterly information for 2025 and 2024. The composition of the same stores of these periods excludes the five stores permanently closed as of year-end 2025 and any fleet-related units.

[Joshua Barsetti, CFO at RideNow Group]

Same-store revenue was $256.9 million during the fourth quarter of 2025 as compared to $241.6 million in 2024, a 6.3% increase. Gross profit was $66.8 million this year compared to $58.7 million in the prior year, a 13.8% increase. Total unit sales was 15,420 in Q4 of 2025 compared with 14,320 in Q4 of 2024. Q4 is the second consecutive quarter of same-store growth in revenue and units sold and the third consecutive quarter of same-store growth in gross profit. For the full year of 2025, we finished with $1.08 billion in revenue and gross profit of $298 million.

[Joshua Barsetti, CFO at RideNow Group]

Wholesale Express revenue in the prior year was $58 million, and gross profit was $13.4 million. Adjusted SG&A was lower by $26.2 million and came in at $243.8 million, a 9.7% reduction year-over-year. Adjusted EBITDA was $46.2 million, 40.4% higher than the prior year. Additionally, we sold a total of 61,894 powersports units this year compared to 64,988 last year. Turning to the balance sheet, we ended the quarter with $42.9 million in total cash, inclusive of restricted cash. Non-Vehicle Net Debt was $189.3 million, and availability under the short-term revolving floor plan credit facilities totaled approximately $123.1 million.

[Joshua Barsetti, CFO at RideNow Group]

Total available liquidity, defined as unrestricted cash plus availability under floor plan credit facilities at the end of the year totaled $152.6 million. Cash inflows from operating activities were $15.9 million for the year ended December 31, 2025, and free cash flow was $10.3 million as compared to $99.4 million in cash flows from operating activities and $97.4 million in free cash flow from the same period last year. Last year's cash from operating activities and free cash flow were impacted by proceeds from the sale of a finance receivable portfolio and the reduction of excess major unit inventory during the period. With that, we'd like to begin the question-and-answer session. I'll turn the call back over to the operator now to open the lines.

[Operator]

Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press star followed by the number one on your touch tone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by the number two. If you're using a speakerphone, please lift the handset before pressing any keys. Your first question comes from the line of Eric Wold from Texas Capital Securities. Your line is now open.

[Eric Wold, Executive Director of Equity Research at Texas Capital Securities]

Thank you. Good afternoon. A couple of questions. I guess one, obviously you've done a fantastic job kind of taking costs out of the system as per your plan, you know, starting last year. Give us a sense of how much was taken out last year. How much actually flowed through the P&L versus kind of what the annualized amount would have been? How much is left, do you think, still to potentially take out going forward?

[Joshua Barsetti, CFO at RideNow Group]

In terms of what was taken out during the year, I don't have that exact number in front of me. From an annualized perspective, we did a lot of that cost takeout toward the prior, toward the tail end of the year. I would say going forward, there's opportunity there that maybe we're not seeing in 2025. We do believe that there's continued opportunity to take costs out of the business. We have really focused on the front end in 2025. In 2026, we're really focusing on the back office and looking at what we can do there to make things more efficient, from a cost perspective.

[Eric Wold, Executive Director of Equity Research at Texas Capital Securities]

Perfect. Then a follow-up question. You know, with the store closures, specifically on the Houston pre-owned store closure, maybe talk about the decision to close that location and whether you believe that that's a model that can work in other markets or if that's just not the right direction, if it was, you know, market-specific or the model itself that wasn't right.

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

I think it's a combination of a couple of things. One, used only stores for us from a profitability perspective. It's better for us to just have that inventory in the existing four walls of our RideNow locations at the RV stores, as there's no incremental cost associated with moving that inventory. Once until you can make the investment to get into a more scalable model for us and where we wanted to achieve and where we are as a company, making that investment, just wasn't gonna pan out for what the returns would be by just putting that extra inventory into existing four walls of our buildings.

[Eric Wold, Executive Director of Equity Research at Texas Capital Securities]

Makes sense. Thank you. Appreciate it.

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

You got it.

[Operator]

As a reminder, if you have any questions or any follow-up, please press star one. Our next question comes from the line of Craig Kennison from Baird. Your line is now open.

[Craig Kennison, Senior Research Analyst at Baird]

Hey, good afternoon. Thank you for taking my question. I'm wondering if you could comment on year-to-date retail trends for new and used powersports units and maybe address whether the oil price spike, which I know is very recent, and tax refund season has had any impact on your results.

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

I'll take it. Look, I think there's a couple of ways to look at what current trends are right now. One, if you're looking at it from an OEM perspective, OEM inventories are healthier today than they were a year ago, we're seeing positive influence there on our trends. In addition to that, when you're just thinking the consumer, the big beautiful bill has helped them from a tax refund perspective as refunds are up about 9%-10% right now. Obviously, as you see, the number of refunds is, I say, returns processed is slightly behind.

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

We think there's still upside to come from that, in what it helps the middle class with the No Tax on Tips, No Tax on Overtime, etc., that everybody already well aware of what the Big Beautiful Bill brings. The other aspect on trends is around interest rates. Interest rates being lower and the fact that approximately two-thirds of our customers are financing. As long as interest rates continue to decline, it provides more purchasing power on our customers to be able to take on more from a payment perspective. With all of that in place, that's why you've kind of seen that throughout the back half of the year where momentum improved from

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

Q2 to Q3 to Q4, and we've continued to see that into Q1. Yeah, although the uncertainty in the market with the Middle East crisis that's ongoing right now, you know, look, we all woke up this morning to a bunch of red lines on our stock apps, and by the time we got to the end of the day, they were all pretty much green. The one thing I will highlight is the level of uncertainty is the only constant that we're dealing with. From our perspective, we're just focusing on what's in our four walls, getting that right, and the rest will work itself out.

[Craig Kennison, Senior Research Analyst at Baird]

Thanks. You've done a nice job improving the status of your inventory. Could you comment on how fresh your inventory is today, then put that in the context of, you know, the competitive landscape? Have your competitors made sufficient progress on inventory in order to kind of reduce the overall discounting in the environment?

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

We believe. Well, I'll start with overall industry. It seems everybody has taken those appropriate steps. We're not seeing a lot of discounting across the board from all of our locations, or not say locations, but from our competitors. From an overall health perspective, our inventory, you know. Look, we wanna stay between three to four months worth of inventory, and we're right in line with that. And at the same time, you know, the vast majority of our inventory is below the 120-day category perspective. you know, look, I think we're happy with our inventory. We see good returns from our inventory. You know, would we always like to have a bit more on the used inventory side, but that's fine. you know, the reality is you gotta buy used inventory that's gonna make yourself profitable.

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

We're not in a position where we feel the need that we need to go chase inventory at this point in time.

[Craig Kennison, Senior Research Analyst at Baird]

Thank you.

Participants

Executives

• Jerene Makia, VP of Finance
• Joshua Barsetti, CFO
• Michael Quartieri, Chairman, CEO, and President

Analysts

• Craig Kennison, Senior Research Analyst at Baird
• Eric Wold, Executive Director of Equity Research at Texas Capital Securities