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RumbleOn, Inc. (RMBL)·Q2 2025 Earnings Summary

Executive Summary

  • Revenue of $299.9M declined 11.0% year over year but beat Wall Street consensus by ~$19.7M; Adjusted EBITDA rose to $17.2M (+6.2% YoY) on cost discipline despite volume pressure . Q2 revenue consensus was $280.2M, actual $299.9M; EPS consensus was -$0.03 while reported EPS was -$0.85, a material miss driven by a $34.0M franchise rights impairment . Values retrieved from S&P Global.*
  • Powersports unit dynamics mixed: new units down 11.5% YoY (10,618), pre-owned up 10.2% (5,283); gross profit per unit improved to $5,264 (+1.9% YoY), supported by richer pre-owned mix and better margins .
  • Vehicle Transportation Services deteriorated sharply as Wholesale Express broker departures weighed: revenue fell 91.4% YoY to $1.3M and vehicles transported dropped 91.5% to 1,993 .
  • Strategic pivots executed: rebranding to RideNow Group, HQ relocation to Chandler, AZ, and term loan amendment extending maturity to 9/30/2027 with a 50 bps interest cut, $20M principal paydown, and ~$3.4M annualized cash interest savings—near-term liquidity covenant eased .
  • Near-term stock reaction catalysts: credibility of cost actions (SG&A down $4.7M YoY), sustainability of pre-owned margin gains, and clarity on Wholesale Express rebuild/B2C test pathway .

What Went Well and What Went Wrong

What Went Well

  • Adjusted EBITDA increased to $17.2M (+$1.0M YoY) despite lower sales, reflecting expense control and margin mix; SG&A reduced by $4.7M YoY to $66.7M; adjusted SG&A down to $64.9M .
  • Margin quality improved: new unit gross margin rose to 13.2% (from 12.3%), pre-owned to 18.8% (from 17.0%); management emphasized “back to our roots” execution and daily improvement roadmap, expressing rising conviction in long-term value creation .
  • Liquidity management: term loan maturity extended to 9/30/2027, $20M paydown funded by $10M related-party subordinated note plus cash, minimum liquidity covenant eased for 2H25, and annualized cash interest expected to decline by ~$3.4M .

What Went Wrong

  • EPS missed materially (-$0.85 vs -$0.03 consensus) driven by a $34.0M non-cash franchise rights impairment; operating income swung to -$18.8M from +$15.4M a year ago . Values retrieved from S&P Global.*
  • Wholesale Express collapse: segment revenue fell to $1.3M (-91.4% YoY) with gross profit $0.2M (-93.5% YoY) as broker departures disrupted the business; rebuild remains uncertain and relationship-driven .
  • Cash generation weakened: first-half operating cash flow was $4.0M vs $29.2M last year, reflecting prior-year benefit from sale of loans receivable; unrestricted cash fell to $44.7M and non-vehicle net debt rose modestly to $185.1M .

Financial Results

Headline Results vs Prior Periods and Estimates

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD Millions)$336.8 $244.7 $299.9
Gross Profit ($USD Millions)$89.9 $67.2 $83.9
SG&A ($USD Millions)$71.4 $61.1 $66.7
Adjusted SG&A ($USD Millions)$70.8 $57.5 $64.9
Operating Income (Loss) ($USD Millions)$15.4 $3.8 $(18.8)
Net Income (Loss) ($USD Millions)$(0.7) $(9.7) $(32.2)
Diluted EPS ($USD)$(0.02) $(0.26) $(0.85)
Adjusted EBITDA ($USD Millions)$16.2 $7.0 $17.2

Actual vs Consensus (S&P Global)

MetricQ2 2024Q1 2025Q2 2025
Revenue Consensus Mean ($USD Millions)$383.861*$281.671*$280.176*
Revenue Actual ($USD Millions)$336.8 $244.7 $299.9
Primary EPS Consensus Mean ($USD)$(0.0875)*$(0.205)*$(0.025)*
Primary EPS Actual ($USD)$(0.0348) $(0.26) $(0.85)

Values retrieved from S&P Global.*

Segment Breakdown (Q2 2025 vs Q2 2024)

Powersports ($USD Millions unless noted)Q2 2024Q2 2025
New Retail Vehicles Revenue$175.8 $154.8
Pre-owned Retail Vehicles Revenue$54.1 $59.2
Wholesale Vehicles Revenue$5.1 $5.0
Finance & Insurance, net Revenue$29.7 $27.2
Parts, Services & Accessories Revenue$56.9 $52.4
Total Powersports Revenue$321.6 $298.6
New Retail Vehicles Gross Profit$21.6 $20.5
Pre-owned Retail Vehicles Gross Profit$9.2 $11.1
Finance & Insurance, net Gross Profit$29.7 $27.2
Parts, Services & Accessories Gross Profit$26.2 $24.9
Total Powersports Gross Profit$86.8 $83.7
Vehicle Transportation ServicesQ2 2024Q2 2025
Vehicles Transported (#)23,334 1,993
Segment Revenue ($USD Millions)$15.2 $1.3
Segment Gross Profit ($USD Millions)$3.1 $0.2

KPIs and Unit Metrics

KPIQ2 2024Q1 2025Q2 2025
New Powersports Units (#)12,004 8,013 10,618
Pre-owned Powersports Units (#)4,796 4,307 5,283
Total Retail Units (#)16,800 12,320 15,901
Gross Profit Per Retail Unit (GPU) ($)$5,167 $5,365 $5,264
New Unit Gross Margin (%)12.3% 13.5% 13.2%
Pre-owned Gross Margin (%)17.0% 16.3% 18.8%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Term Loan MaturityThrough 20278/31/2026 (prior schedule)Extended to 9/30/2027 Raised (extended)
Interest Rate (Term Loan)OngoingPrior couponReduced by 50 bps Lowered
Principal PaydownAug 2025N/A$20M paydown ($10M subordinated note + $10M cash) Implemented
Annualized Cash InterestOngoingN/A~$3.4M lower post-amendment Lowered
Minimum Liquidity CovenantQ3–Q4 2025; from Q1 2026$30M (Q3–Q4 2025)$20M (Q3–Q4 2025); +$2M per quarter starting 3/31/2026 Eased near term

No formal revenue, margin, or EPS guidance was provided in Q2 materials .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024)Previous Mentions (Q1 2025)Current Period (Q2 2025)Trend
Tariffs/MacroMacro headwinds cited; inventory reduced; cost controls Tariffs creating uncertainty; OEMs absorbing some costs; no demand pull-forward observed “Feels like industry bottoming”; stabilization and uplift in pre-owned/new demand post “big beautiful bill” tax changes Improving
Pre-owned vs New MixPre-owned softness; emphasis on right inventory mix Pre-owned down less than new; margin mix helping Pre-owned units +10.2% YoY; pre-owned margin 18.8% vs 17.0%; new units -11.5% YoY Positive mix shift
Wholesale ExpressStable in Q4’24; modest revenue Warned of broker departures and 2025 decline Revenue -91.4% YoY; testing B2C transport; rebuild slower due to relationship stickiness Deteriorating/uncertain
Cost/SG&A DisciplineSG&A down YoY; adjusted EBITDA positive Adjusted SG&A -20.8% YoY; target 75% of gross profit SG&A -$4.7M YoY; adjusted SG&A down; adjusted EBITDA +$1.0M YoY Improving
Capital Structure/RefiRights offering; debt reduction; cash flow positive Exploring refinancing; repaid converts in Jan’25 Term loan amend: maturity extended; rate cut; paydown; covenant relief Improved flexibility
Brand/OperationsFocus on foundational improvements Leadership additions; store performance management Rebrand to RideNow Group; HQ move to Chandler, AZ; unify culture (“one team”) Strategic alignment

Management Commentary

  • “Back to our roots” strategy is “working and driving improvement”; clear roadmap and improved execution underpin confidence in significantly improved results and shareholder value .
  • “My conviction in our future success and value creation potential grows” with balanced near‑term initiatives and structural changes; culture of accountability emphasized .
  • On capital structure: extension to 9/30/2027, $20M paydown, and 50 bps rate cut reduce annual cash interest by ~$3.4M and provide runway for improvement and eventual refinancing .

Q&A Highlights

  • Pricing/inventory environment: Management sees stabilization after a rough start to the year; improved consumer confidence post tax changes (e.g., motorcycles qualifying for auto interest deduction), aiding both pre-owned and new demand .
  • Wholesale Express path: Rebuilding is relationship-driven and slow; exploring B2C opportunities for individual vehicle moves—testing underway, with reassessment later in the year to determine segment’s future model .
  • Margin commentary: New gross margin improved to 13.2%; pre-owned to 18.8%, with GPU up modestly YoY due to mix .

Estimates Context

  • Q2 2025: Revenue beat consensus ($299.9M vs $280.2M*) but EPS missed materially (-$0.85 vs -$0.03*), primarily due to the $34.0M franchise rights impairment and Wholesale Express revenue shortfall . Values retrieved from S&P Global.*
  • Prior quarters: Q1 2025 missed on revenue ($244.7M vs $281.7M*) and slightly on EPS (-$0.26 vs -$0.21*); Q2 2024 missed revenue ($336.8M vs $383.9M*) but beat EPS modestly (-$0.03 vs -$0.09*) . Values retrieved from S&P Global.*
  • Implications: Street EPS models likely adjust lower near term to reflect impairment/non-recurring items and Transportation weakness; revenue trajectory may see upward revisions tied to pre-owned strength and margin improvements in core Powersports .

Key Takeaways for Investors

  • Revenue quality improved in core Powersports with better margins and GPU, but headline EPS was hit by a non-cash impairment—focus on adjusted EBITDA and cash interest savings to gauge underlying progress .
  • The Wholesale Express reset is a risk overhang; watch for traction in B2C tests and broker hiring/retention to stabilize segment economics .
  • Cost discipline is credible (SG&A down; adjusted SG&A down), supporting EBITDA despite volume pressure—monitor whether adjusted SG&A can trend toward the 75% of gross profit target .
  • Balance sheet/liquidity improved via loan amendment, paydown, and covenant relief; the 50 bps rate cut and ~$3.4M annualized interest savings enhance free cash flow potential heading into 2026 .
  • Rebranding to RideNow Group (ticker change to RDNW) and HQ relocation unify brand and operations—potentially a sentiment catalyst as execution aligns with dealership heritage .
  • Near-term narrative movers: pre-owned unit growth/margin sustainability, stabilization in new units post tax changes, and clarity on segment strategy for Transportation .
  • Expect Street models to bifurcate GAAP vs non-GAAP; impairment may be excluded in adjusted views, but segment weakness must be addressed operationally to sustain beats on EPS/FCF .

Supporting Materials Used

  • Q2 2025 8-K and Exhibit 99.1 press release with full financial tables .
  • Q2 2025 earnings press release (duplicate content set) .
  • Q2 2025 earnings call transcript .
  • Rebranding press release (RideNow Group, HQ move, ticker change) .
  • Q1 2025 press release and call for trend analysis .
  • Q4 2024 press release for prior-quarter context .
  • S&P Global consensus via GetEstimates. Values retrieved from S&P Global.*