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RumbleOn's First Quarter 2025 Financial Results

RumbleOn, Inc. (NASDAQ: RMBL), a prominent player in the powersports retail space, has released its financial performance metrics for the first quarter ending March 31, 2025. The results indicate a mixed bag of challenges and improvements as the company navigates a competitive market landscape. This report breaks down the critical highlights and figures from RumbleOn's earnings announcement, providing a deeper understanding of their financial health.

Key Highlights

1. Revenue Decline: The company reported a revenue of $244.7 million, marking a significant drop of 20.5% from $307.8 million in the same quarter of the previous year. This decline can be primarily attributed to a decrease in powersports unit sales, which fell by 3,399 units.

2. Net Loss Improvement: Although the company faced a net loss of $9.7 million, this shows a modest improvement compared to the previous year's loss of $10.3 million, suggesting effective cost management and operational efficiencies.

3. Reduction in SGA Expenses: Selling, general, and administrative expenses (SGA) saw a notable reduction to $61.1 million from $73.9 million, reflecting a keen focus on controlling overhead costs during challenging periods.

4. Adjusted EBITDA: The adjusted EBITDA for Q1 2025 came in at $7.0 million, slightly down from $7.7 million a year ago, indicating ongoing operational challenges but a firm approach to maintaining profitability at adjusted levels.

5. Operating Cash Flow: The business faced cash outflows totaling $6.9 million for the quarter, contrasting sharply with inflows of $17.0 million reported in 2024, indicating increased pressures on cash management practices.

6. Debt Repayments: A notable commitment included the repayment of $38.8 million in 6.75% convertible senior notes, thereby reducing overall debt obligations and reinforcing their financial footing.

Segment Performance

Powersports Segment

The powersports segment continues to be a pivotal contributor to RumbleOn’s revenue. However, unit retail sales experienced a year-over-year decline:

• - New Powersports Sales: Dropped to 8,013 units from 10,503, a decrease of 23.7%.
• - Pre-owned Powersports Sales: Fell to 4,307 units from 5,005, reflecting a decline of 13.9%.
• - Total Revenue from Powersports: The total revenue for powersports reached $239.2 million, compared to $293.5 million, a reduction of 18.5%. This decrease highlights the need for RumbleOn to adapt and innovate within their offerings to regain market share.

Vehicle Transportation Services

The vehicle transportation services segment faced noticeable challenges:

• - Vehicles Transported: The number of vehicles transported dropped significantly to 8,625 from 24,637, a staggering decline of 65.0%.
• - Revenues: This segment's revenue fell to $5.5 million from $14.3 million, evidencing a critical operational pullback that warrants strategic reevaluation.

Management Insights

Chairman and CEO Michael Quartieri expressed pride in the team's results despite a tough economic landscape for consumers. He emphasized a commitment to turnaround initiatives aimed at improving profitability and enhancing sales productivity.

RumbleOn is focused on addressing the core challenges that have impacted sales volumes, specifically within their powersports segment. The management believes that with the right adaptations and strategic focus, future quarters can show improved results.

Looking Ahead

As RumbleOn positions itself for recovery, the upcoming investor conference call on May 7, 2025, offers an opportunity for stakeholders to gain insights directly from management about the company's future plans and outlook. The management will discuss ongoing initiatives, operational changes, and potential new strategies designed to enhance product offerings and customer engagement.

In summary, RumbleOn’s Q1 2025 financial results paint a picture of a company navigating through difficulties with a strategic approach to cost management and an unwavering focus on their core operations. While challenges abound, the improvements in net loss and cost control signal a cautious optimism as they strive to regain momentum in a competitive market.