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RumbleOn, Inc. (RMBL)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue was $269.6M, down 13.4% YoY; Adjusted EBITDA turned positive at $2.2M versus a $0.3M loss in Q4 2023, while GAAP EPS was $(1.58) including $39.3M of intangible impairment .
  • Powersports revenue fell 14.1% YoY to $256.2M, with total GPU improving 4.5% to $4,547; Vehicle Transportation Services (Wholesale Express) grew revenue 3.1% to $13.4M but saw a slight gross profit decline .
  • Free cash flow for FY 2024 was $97.4M, aided by a $106.9M inventory reduction; the company repaid $38.8M converts in January 2025 and ended FY with $85.3M unrestricted cash and $146.2M floor-plan availability .
  • Management discontinued the prior “Vision 2026” plan, emphasized cost discipline and profitability, and warned tariffs could pressure affordability; 2025 Wholesale Express volumes expected to step down yet still deliver positive EBITDA .
  • Wall Street consensus estimates via S&P Global were unavailable; beats/misses versus street could not be determined due to data access limitations.

What Went Well and What Went Wrong

What Went Well

  • Adjusted EBITDA inflected to positive $2.2M in Q4; FY 2024 Adjusted EBITDA was $32.9M, evidencing SG&A optimization and inventory actions .
  • Operating cash flow swung to +$99.4M in 2024 and free cash flow reached $97.4M; Non-Vehicle Net Debt fell to $182.1M (down $60.8M YoY) .
  • “We exceeded our goal of reducing new inventory levels and generated positive free cash flow for the year...with the right inventory mix...we’re confident we can deliver sustained, improved results,” said CEO Michael Quartieri .

What Went Wrong

  • Revenue declined 13.4% YoY to $269.6M; new and pre-owned powersports unit volumes fell 9.5% and 8.8% respectively, with new unit gross margins pressured by industry overstocking and brand exits .
  • Q4 GAAP net loss was $(56.4)M driven by $39.3M intangible impairment and interest expense; PSA and F&I revenue declined double digits YoY .
  • Management highlighted tariff risks and consumer headwinds (rates, macro uncertainty), and expects Wholesale Express volumes to step down significantly in 2025 due to broker turnover, despite aiming for positive EBITDA .

Financial Results

Sequential Performance (Q2 → Q3 → Q4 2024)

Metric ($USD Millions unless noted)Q2 2024Q3 2024Q4 2024
Revenue$336.8 $295.0 $269.6
Gross Profit$89.9 $74.3 $67.5
SG&A$71.4 $65.9 $64.2
Operating Income (Loss)$15.4 $5.3 $(40.6)
Net Loss$(0.7) $(11.2) $(56.4)
Adjusted EBITDA$16.2 $6.8 $2.2
GAAP EPS ($)$(0.02) $(0.32) $(1.58)

YoY Comparison (Q4 2023 vs Q4 2024)

Metric ($USD Millions unless noted)Q4 2023Q4 2024YoY Change
Revenue$311.2 $269.6 (13.4)%
Gross Profit$71.2 $67.5 (5.2)%
SG&A$81.7 $64.2 (21.4)%
Operating Loss$(75.4) $(40.6) +46.2%
Net Loss$(168.5) $(56.4) +66.5%
Adjusted EBITDA$(0.3) $2.2 NM
GAAP EPS ($)$(7.81) $(1.58) —

Segment Breakdown (Q4 2024 vs Q4 2023)

Powersports ($USD Millions)Q4 2023Q4 2024
New Revenue$157.0 $138.5
Pre-owned Revenue$56.3 $47.9
Finance & Insurance, net$27.3 $22.6
Parts, Services, Accessories$57.6 $47.2
Total Powersports Revenue$298.2 $256.2
New Gross Profit$20.7 $15.0
Pre-owned Gross Profit$(5.8) $4.7
F&I Gross Profit$27.3 $22.6
PSA Gross Profit$25.6 $22.0
Total Powersports Gross Profit$67.8 $64.3
Vehicle Transportation ServicesQ4 2023Q4 2024
Vehicles Transported (#)21,599 22,212
Revenue ($M)$13.0 $13.4
Gross Profit ($M)$3.4 $3.3

KPIs and Operating Metrics

KPIQ2 2024Q3 2024Q4 2024
Unit Retail Sales – New12,004 9,740 10,217
Unit Retail Sales – Pre-owned4,796 4,549 3,925
Powersports GPU ($/unit)$5,167 $4,955 $4,547
F&I Revenue ($M)$29.7 $24.3 $22.6
PSA Revenue ($M)$56.9 $49.2 $47.2
VTS Vehicles Transported (#)23,334 25,084 22,212
VTS Revenue ($M)$15.2 $15.1 $13.4

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue/EPS GuidanceFY 2025None provided None provided Maintained (no formal guidance)
Adjusted SG&A as % of GPLong-termTarget ~75% (Vision 2026) Target ~75% (long-term) Maintained
New Inventory ReductionFY 2024Reduce ~$50–$60M Reduced >$80M (achieved) Raised/Exceeded
Wholesale Express (VTS)FY 2025Not guidedPositive EBITDA; volumes to step down significantly due to broker turnover New qualitative outlook
Strategic Plan FrameworkOngoing“Vision 2026” references Discontinue “Vision 2026”; focus on profitability and cash flow Replaced
Capital Structure – ConvertsJan 2025Intended repayment from cash Repaid $38.8M converts in Jan 2025 Achieved

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q4 2024)Trend
Inventory & Gross MarginsIndustry overstocking; new margins compressed; pre-owned margins improving; working to reduce day supply Comfortable with new inventory; parts inventory still high; new margins pressured by promotions; GPU up modestly Incremental improvement in inventory; margins still pressured
Cost Structure & SG&A$30M annualized savings; SG&A alignment to industry; targeting 75% of GP Adjusted SG&A down 22.9% YoY; reiterates long-term 75% of GP target Improving productivity
Capital StructureExploring debt refinancing; plan to repay converts early ’25 Converts repaid; continue to evaluate refinancing, lower cost of capital Strengthening balance sheet
Wholesale Express (VTS)Q2: revenue up but GP down on pricing pressure Leadership change and broker exits; expect volume step back in 2025 but aim for positive EBITDA Near-term setback, profitability focus
Tariffs/Macro & ConsumerHigh interest rates and cautious consumer referenced Tariff uncertainty may hamper affordability; macro headwinds persist Elevated risk
Technology/OperationsRideNow Cash Offer, DMS unaffected by CDK outage; opening pre-owned Houston pilot Emphasis on standardizing systems/processes, high-performance culture Operational discipline building

Management Commentary

  • CEO strategy: “Discontinue any reference to the Vision 2026 plan… focus needs to remain on driving profitability, growing the company and creating shareholder value day in and day out” .
  • Inventory execution: “We have exceeded that inventory reduction goal, reducing new inventories by over $80 million… we are going into 2025 with the appropriate level of new inventory” .
  • Tariffs risk: “Assuming currently contemplated tariffs are enacted… affordability… could be hampered, negatively impacting customer demand” .
  • Liquidity and deleveraging: “We repaid all of our outstanding $38.8 million of convertible notes… we continue to actively evaluate opportunities to optimize our capital structure” .
  • Press release tone: “Disciplined execution, operational efficiency… generated positive free cash flow for the year… confident we can deliver sustained, improved results” .

Q&A Highlights

  • Tariff exposure and OEMs: Top OEMs (Polaris, BRP, Harley) account for ~60–65% of sales; tariff cost pass-through uncertain and dynamic .
  • Consumer/macro: Management does not provide intra-quarter updates; cited headwinds from interest rates, policy uncertainty, and consumer health .
  • Industry inventory and margins: Promotional activity likely to persist; parts inventory a bit high; margin compression tied to industry overstocking and brand exits .
  • Interest rates sensitivity: A 25bp rate change ~ $1M annualized savings on variable debt/floor plan; showroom demand likely benefits from lower rates .
  • Capital structure: Confirms strategy to repay converts (subsequently completed) and pursue refinancing to lower cost of capital .

Estimates Context

  • Wall Street consensus estimates (S&P Global) were unavailable at time of analysis due to data access limitations; therefore, formal beat/miss versus estimates cannot be determined. The company does not provide formal revenue/EPS guidance .

Key Takeaways for Investors

  • Balance sheet progress and cash generation: 2024 operating cash flow of $99.4M and free cash flow of $97.4M, plus converts repaid in Jan 2025, reduce risk and support refinancing optionality .
  • Inventory normalization underway: New inventories reduced >$80M; expect continued margin pressure near term but improved unit economics as OEM promotional cycles and assortment rationalization normalize .
  • Near-term caution in Wholesale Express: Leadership/broker turnover should reduce 2025 volumes, but management still targets positive EBITDA—watch execution on rebuilding broker network .
  • Tariff and macro overhang: Potential tariffs on relevant products and higher rates could dampen affordability; monitor OEM pricing/promotions and credit conditions for demand signals .
  • Cost discipline intact: Adjusted SG&A down 22.9% YoY in Q4; long-term target of ~75% of gross profit provides a lever for earnings recovery as volumes stabilize .
  • Strategic pivot: Discontinuation of Vision 2026 in favor of day-to-day profitability, standardized processes, and accretive capital allocation should reduce execution risk .
  • Trading setup: Catalysts include any debt refinancing update, tariff clarity, further inventory drawdowns, and confirmation of positive EBITDA in Wholesale Express; risks center on consumer demand elasticity and ongoing margin compression .