#United States #financial results #Chandler #Powersports #RideNow Group

RideNow Group, Inc. Reports Third Quarter 2025 Financial Results

On November 4, 2025, RideNow Group, Inc. (NASDAQ: RDNW) announced its financial results for the third quarter that ended on September 30, 2025. The company has demonstrated resilience in a challenging market, primarily in its powersports segment. Here, we outline the key highlights and insights from the report.

Key Highlights

• - Revenue Trends: RideNow's overall revenue for the third quarter recorded $281.0 million, a slight decline of 4.7% compared to $295.0 million in the same quarter last year. Despite this dip, the powersports segment showed signs of improvement with increased unit sales, contributing positively to revenue.
• - Powersports Gross Profit: The gross profit from powersports increased by 6.9% to $76.0 million, effectively countering declines in other segments, notably in transportation services.
• - Reduction in Expenses: The company successfully cut down its Selling, General, and Administrative (SGA) expenses by 2.3%, leading to more efficient operations.
• - Improved Net Loss: The net loss narrowed significantly to $4.1 million from $11.2 million in the previous year's corresponding quarter, reflecting a remarkable 63.4% improvement.
• - Record Growth in Adjusted EBITDA: This key financial metric surged by 80.9% to $12.3 million compared to $6.8 million reported in Q3 2024.

Comments from Leadership

Michael Quartieri, Chairman and CEO, expressed his optimism regarding the company's performance, stating, "The momentum from the second quarter has carried through into the third quarter, driven by our 'back to our roots' strategy. We see a clear pathway to continued improvement and growth which we believe will enhance shareholder value."

Segment Breakdown

The performance can be further delineated into the individual segments:

• - Powersports Segment: RideNow reported a total of 14,605 retail unit sales, comprising both new and pre-owned vehicles. Specifically, new retail vehicle sales stood at 9,904 units, while pre-owned units reached 4,701. The revenue from powersports vehicles remained stable, offering a welcoming beacon in an otherwise fluctuating market.
• - Vehicle Transportation Services: This segment, on the other hand, experienced a stark decline with revenues plummeting to only $1.0 million from $15.1 million a year prior, indicating a 93.4% drop. The report highlighted fewer vehicles being transported, drastically affecting the unit economics in this segment.

Financial Position and Outlook

As of September 30, 2025, RideNow's balance sheet revealed total unrestricted cash of $35.4 million, a significant decrease from $85.3 million at the end of the previous year. The long-term debt reduced to $207.5 million from $251.1 million, enhancing liquidity. The Company reported a decline in operating cash flow to $15.5 million for the nine months ending September 30, 2025, compared to $68.6 million in 2024.

In positive news for investors, the liquidity position remains robust with approximately $182.9 million in total available liquidity, factoring in cash reserves alongside credit facilities. Following a recent debt restructuring, the company anticipates a lower annual interest expense, estimated to reduce by $3.4 million moving forward.

Looking Ahead

As the management gears up for a conference call to discuss these results further, it remains evident that despite market challenges, RideNow Group, Inc. is on a recovery path. The company's efforts in pursuing a strategic back-to-core approach seem to be yielding positive outcomes, providing optimism for future quarters.

Conclusion

In conclusion, the financial results of Q3 2025 for RideNow Group, Inc. reflect a firm resolve amidst adversity, showcasing operational adjustments that have led to significant gains in gross profit and net loss reduction. The continuing upward trajectory in the powersports sector is a promising signal for investors, indicating a brighter future ahead for the company.