RDNW

Interested in RideNow Group, Inc.? Here are five stocks we like better. RideNow Group reported improving profitability: Second-quarter same-store revenue rose 3% to $291.5 million, while adjusted EBITDA increased 19.2% to $20.5 million. Cost controls, operational improvements and stronger new-unit margins helped offset lower total revenue and unit sales following store consolidations. Demand and market conditions were mixed: Consumer demand remained generally consistent, supported by manufacturer financing promotions, but early third-quarter same-store sales declined by a low-single-digit percentage. Used-vehicle inventory remained competitive, while overall inventory stayed near management’s preferred four-month level. Refinancing is the immediate priority: RideNow ended the quarter with $158.2 million in total liquidity and secured a new $20 million used floor-plan facility. Management expects to resume pursuing dealership acquisitions after refinancing is completed and remains confident in generating adjusted EBITDA and free cash flow through 2026. 3 Small-Cap Stocks Getting a Russell 2000 Rebalance Boost RideNow Group (NASDAQ:RDNW) reported second-quarter 2026 same-store revenue growth and a double-digit increase in adjusted EBITDA, as management said operational improvements and cost discipline continued to support its turnaround efforts. Same-store revenue reached $291.5 million, up 3% from $282.9 million a year earlier, while adjusted EBITDA increased 19.2% to $20.5 million from $17.2 million. Chairman, Chief Executive Officer and President Michael Quartieri said the company’s momentum from the second half of 2025 continued through the first half of 2026. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat These 2 Powersports Stocks Can Rev Up Your Portfolio “Our balanced tactical plan combines near-term operational improvements with structural changes to advance our long-term strategic direction,” Quartieri said. He cited leadership changes, cost efficiency efforts and renewed operating discipline across stores as key components of the company’s plan. Total revenue for the quarter was $296.8 million, compared with $299.9 million in the prior-year quarter. Executive Vice President and Chief Financial Officer Josh Barsetti said the decrease was predominantly attributable to store consolidation efforts, with the company operating five fewer stores than it did a year earlier. → 3 Dividend Champion Utilities for a Market That Can't Sit Still RideNow sold 16,626 units during the quarter, down 2.9% from the prior year. New retail unit sales rose 1.8% to 10,807 units, while pre-owned retail unit sales declined 6.8% to 4,924 units. Gross profit increased to $84.8 million from the prior-year period, while same-store gross profit rose 2% to $83 million. New-unit gross margin improved to 14.8% from 13.2%, while pre-owned gross margin declined to 18.0% from 18.8%. → Is Wingstop's Growth Story Losing Steam? Adjusted selling, general and administrative expenses fell to $62.8 million, or 74.1% of gross profit, from $64.9 million, or 77.4% of gross profit, a year earlier. RideNow’s fixed operations business, which includes parts, service and accessories, generated $50.1 million in revenue and $24.2 million in gross profit. Finance and insurance revenue was $27 million, compared with $27.2 million in the prior-year quarter. For the first six months of 2026, revenue increased to $557.2 million from $544.6 million, gross profit rose to $156.4 million from $151.1 million, and adjusted EBITDA increased to $29.8 million from $23.2 million. During the question-and-answer session, Quartieri said consumer demand has remained relatively consistent, with manufacturer financing promotions having a greater effect on purchasing decisions than direct rebates. He said approximately 65% of RideNow customers finance their units, making offers such as 0% financing or low interest rates important drivers of sales volume. Barsetti said inventory levels were in the “low four-month range,” which he described as the company’s preferred level. New inventory was somewhat above that range, while used inventory was somewhat below it. Quartieri said the used-vehicle market remains competitive because of competition among dealerships and continued growth in private sales. However, he said RideNow has been using a cash-offer tool, trade-ins, service visits and digital marketing campaigns to acquire inventory. Inventory not suited for the company’s retail operations is sent to auction, he said. Management said it experienced solid year-over-year momentum in June, but same-store sales early in the third quarter were down slightly year over year in the low-single-digit range amid market volatility. Quartieri said the company was focusing on factors it can control within its own operations. He also said RideNow had not observed a material change in credit metrics, including applicant credit scores and default rates, during 2026. RideNow ended the quarter with $63.1 million in total cash, including restricted cash. The company secured a new $20 million used floor plan facility that will replace an existing related-party floor plan line expected to wind down in August. It also added floor plan availability for new products. Short-term revolving floor plan credit availability totaled about $95.1 million at quarter-end. Total available liquidity, including cash and floor plan availability, was $158.2 million. Non-vehicle net debt was $174.4 million. Cash used in operating activities was $28.2 million for the first six months of 2026. Adjusted free cash flow was $20.8 million for the first half, compared with $2.9 million a year earlier, as the company drew on floor plan facilities to fund inventory. Quartieri said RideNow made substantial progress on refinancing efforts and expects to provide more information in coming weeks. He said completing the refinancing is the company’s immediate priority before it resumes pursuing acquisitions. Once refinancing is completed, RideNow intends to evaluate tuck-in acquisitions of single-point dealers within its existing footprint, as well as opportunities to enter new markets. Quartieri said acquisitions remain a long-term pillar of the company’s value strategy. The company also said it expects to continue generating strong adjusted EBITDA and free cash flow through the remainder of 2026. RideNow Group, Inc (NASDAQ: RDNW) is a leading U.S. retailer of powersports vehicles, offering both new and pre-owned inventory to enthusiasts and recreational riders. The company's dealerships carry a diverse lineup of motorcycles, all-terrain vehicles (ATVs), side-by-sides, personal watercraft and snowmobiles from major manufacturers. In addition to vehicle sales, RideNow Group provides comprehensive service and maintenance, aftermarket parts and accessories and a range of financing and protection plans tailored to powersports customers. Founded in 2004 and headquartered in Houston, Texas, RideNow Group has grown through a combination of organic expansion and strategic acquisitions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "RideNow Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Total Revenue: $296.8 million in Q2 2026, compared to $299.9 million in the prior-year quarter. Same Store Revenue: $291.5 million, up 3% year over year. Adjusted EBITDA: $20.5 million, a 19.2% increase from $17.2 million in Q2 2025. Adjusted SG&A Expenses: $62.8 million, or 74.1% of gross profit, down 3.3% from $64.9 million (77.4% of gross profit) in the prior-year quarter. Gross Profit: $84.8 million, up $1.1 million year over year. New Unit Gross Margin: Improved to 14.8% from 13.2% in the prior-year quarter. Pre-Owned Gross Margin: Decreased to 18% from 18.8% in Q2 2025. Fixed Operations Revenue: $50.1 million, with gross profit of $24.2 million. Finance & Insurance Revenue: $27 million, down $200,000 from $27.2 million in the prior-year quarter. Total Units Sold: 16,626 units, down 491 units (2.9%) year over year. New Retail Unit Sales: 10,807 units, up 189 units (1.8%) year over year. Pre-Owned Retail Unit Sales: 4,924 units, down 359 units (6.8%) year over year. Six-Month Revenue: $557.2 million, up $12.6 million from $544.6 million in the prior-year period. Six-Month Gross Profit: $156.4 million, compared to $151.1 million in the prior-year period. Six-Month Adjusted EBITDA: $29.8 million, up from $23.2 million. Six-Month Same Store Revenue: $549.7 million, up $37.9 million from $511.8 million. Six-Month Adjusted Free Cash Flow: $20.8 million, compared to $2.9 million in the prior-year period. Total Cash: $63.1 million, inclusive of restricted cash. Total Available Liquidity: $158.2 million at the end of the quarter. Non-Vehicle Net Debt: $174.4 million. Store Locations: Operating five fewer stores during Q2 2026 compared to the prior-year quarter due to store consolidation efforts. Warning! GuruFocus has detected 5 Warning Signs with RDNW. Is RDNW fairly valued? Test your thesis with our free DCF calculator. Release Date: August 11, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Adjusted EBITDA rose 19.2% year-over-year to $20.5 million in Q2 2026, reflecting strong operational leverage. Same Store Revenue increased 3% to $291.5 million, marking the fourth consecutive quarter of Same Store growth in revenue and units sold. New unit gross margins improved to 14.8% from 13.2% in the prior-year quarter, driving a $1.1 million increase in gross profit dollars. Adjusted free cash flow surged to $20.8 million for the first half of 2026, up from $2.9 million in the prior-year period. The company secured a new $20 million used floorplan facility and expanded new product floorplan capacity, boosting total available liquidity to $158.2 million. Total revenue declined to $296.8 million from $299.9 million in Q2 2025, driven by the closure of five stores. Pre-owned retail unit sales fell 6.8% year-over-year, and pre-owned gross margins decreased to 18% from 18.8%. Same Store Sales in early Q3 2026 are down slightly on a year-over-year basis, reflecting market volatility. Cash outflows from operating activities were $28.2 million for the first half of 2026, indicating significant cash usage. The company's refinancing efforts remain incomplete, with management noting that M&A growth is contingent on completing this process. Q: Can you provide an update on the company's refinancing efforts and the timeline for returning to growth through acquisitions?A: Michael Quartieri (Chairman, CEO, and President) stated that the major focus is completing the refinancing, with more news expected in the coming weeks. Once completed, the company will pursue highly accretive acquisitions, including tuck-ins to expand existing footprints and entering new markets. Q: What are the key financial highlights for the second quarter of 2026?A: Joshua Barsetti (CFO) reported total revenue of $296.8 million, down from $299.9 million due to store consolidation, but adjusted EBITDA increased 19.2% to $20.5 million. Same Store Revenue grew 3% to $291.5 million, marking the fourth consecutive quarter of Same Store growth in revenue and units sold. Q: How is the current consumer behavior affecting sales between new and pre-owned vehicles?A: Michael Quartieri explained that consumer behavior is largely driven by OEM offers, particularly low or 0% financing, as 65% of customers finance their units. The pre-owned market remains competitive due to private sales, but the company is successfully acquiring inventory through trade-ins and its RideNow Cash Offer tool. Q: What is the current inventory position, and how is the company managing pre-owned vehicle acquisition?A: Joshua Barsetti noted inventory is in the low four-month range, with new units slightly higher and used units slightly lower. Michael Quartieri added that the company is leveraging trade-ins and digital marketing to acquire desirable inventory, while sending undesirable units to auction immediately. Q: Have there been any discernible trends in consumer traffic amid recent market volatility?A: Michael Quartieri acknowledged strong momentum in the first half of the year, including a nice year-over-year increase in June. However, early in Q3, Same Store Sales are down slightly in the low-single digits year-over-year, though it's too early to determine a trend. Q: Are there any significant trends in credit metrics or financing?A: Joshua Barsetti stated there are no significant changes in credit trends, including credit scores of applicants and default rates, throughout the 2026 period. The company regularly reviews metrics from third-party finance providers. Q: What is the current liquidity position and balance sheet status?A: Joshua Barsetti reported total cash of $63.1 million, with total available liquidity of $158.2 million. The company secured a new $20 million used floorplan facility and expanded new product floorplan capacity. Non-vehicle net debt stood at $174.4 million. Q: How did the company perform in terms of unit sales and gross margins?A: Joshua Barsetti noted total units sold were 16,626, down 2.9% year-over-year, but new retail units increased 1.8% to 10,807. New unit gross margins improved to 14.8% from 13.2%, while pre-owned gross margins decreased to 18% from 18.8%. Q: What is the outlook for adjusted free cash flow and capital deployment?A: Joshua Barsetti introduced adjusted free cash flow as a new non-GAAP measure, reporting $20.8 million for the first half of 2026, up from $2.9 million in the prior year. Michael Quartieri emphasized the company will deploy capital with strict discipline, focusing on accretive acquisitions. Q: What key milestones were achieved during the quarter?A: Michael Quartieri highlighted the addition to the Russell 2000 Index, securing a new $20 million used floorplan facility, expanding new product floorplan capacity, and completing relocations of Tallahassee and Gainesville, Florida stores into upgraded facilities. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

(Bloomberg) -- CoreWeave Inc. shares have been on a roll lately after a monthslong slump. Now, the neocloud provider’s earnings after the close Tuesday can give investors a sense of whether the rally is sustainable. Most Read from Bloomberg China Unleashes $28 Trillion Capital Markets to Challenge US in AI Nvidia Taps Wall Street for $500 Billion Funding Commitment Trump Makes Sweeping New Demands on Iran as Deal Hopes Dim Stocks Churn as Hormuz Standoff Spurs Rally in Oil: Markets Wrap Iran Shakes Up Security Team After Saying Oman Deal ‘Very Close’ The problem is, quarterly results tend to bring out the worst in the stock, which has fallen after each of the company’s last five earnings reports, according to data compiled by Bloomberg. “It almost doesn’t matter what they say on their earnings,” said Willy Lee, principal at venture firm Neostellar, which has held shares of CoreWeave since before its initial public offering. “The market’s still I think locked in on pieces of their earnings where I’m not sure if people fully understand parts of the story, and I think it’s just taken time for people to digest.” It’s been a rocky ride in the stock market for CoreWeave, which rents cloud-computing power for artificial intelligence, since going public in March 2025. The shares have been whip-lashed by the expiration of early investor lockups and shifting sentiment surrounding AI. They more than tripled in their first few months of trading, gave back a good chunk of that gain over the next few months, and have flipped between periods of steep gains and sharp losses ever since. Through it all, the stock is up 120% since the IPO and 23% this year. However it’s still down 41% from the all-time high it hit almost exactly a year ago. The latest downturn started in May after the company’s first-quarter earnings report featured a disappointing forecast that sparked concerns about slowing growth. The stock plunged 56% from a high in May to a low in July. But it has recovered almost half that loss, with a 21% jump in a single session after CoreWeave and Leidos Holdings Inc. announced they were developing AI cloud services for US defense and intelligence operations, followed by last week’s 26% gain, its best performance in over a year. After all that, the company’s earnings will offer a clearer view of where CoreWeave stands at this critical juncture. The company has been spending to build more data center capacity, and it has said that the benefits of those investments should start showing up in the second half of this year, making management’s forward guidance even more crucial than they’ve ever been. “It’s great if you can bring on capacity, but you have to make money from that,” said BNP Paribas analyst Stefan Slowinski, who has an outperform rating on the stock. “The risk is if they’re cautious on that Q3 guidance on the operating profits, then it may not answer those concerns people have. And if all of that has to come in the fourth quarter, then just like with any stock it creates risk if you’re sort of putting all of your eggs into the Q4 basket.” Wall Street expects the Livingston, New Jersey-based company to report a 111% rise in second-quarter revenue to $2.6 billion, and an adjusted net loss of $649 million compared with $131 million a year ago. Analysts have grown increasingly skeptical about this report, raising their projections for CoreWeave’s adjusted loss by 8.4% in the last month and 18% over the last three months. CoreWeave also is expected to post an adjusted operating margin of 2.9% in the second quarter. The figure will be key for investors after falling to about 1% in the first quarter. “I’m hoping that that margin was the low that we’ll see for the year, and that when they report this quarter, it’ll be up from the March trough and they guide to increases each and every quarter in margin,” said Paul Meeks of Freedom Capital Markets. “That’ll make me feel that the ding in short term property profitability is indeed behind us.” The optimism is reasonable considering the biggest AI spenders like Alphabet Inc., Meta Platforms Inc. and Microsoft Corp. are maintaining or raising their capital expenditure plans. The three companies make up roughly 80% of CoreWeave’s revenue, according to data compiled by Bloomberg. At the same time, the field is becoming increasingly competitive. Elon Musk’s SpaceX has inked a number of deals to sell AI computing power, and Meta is reportedly developing plans to do the same. Still, Wall Street remains bullish on CoreWeave due to the overwhelming demand for AI infrastructure. Of the 43 analysts tracked by Bloomberg who cover the company, 29 have buy ratings. The average price target of around $138 implies shares will climb 57% over the next 12 months. “AI infrastructure demand remains exceptionally strong and capacity largely sold out,” Citi’s Tyler Radke, who has a buy rating on the stock, wrote in an August 4 note to clients. Of course, the stock’s position — up from a recent trough but still significantly below its all-time high — also sets up a potential buying opportunity. That is, as long as CoreWeave can deliver a solid outlook that calms concerns around its return on investment and gives investors confidence that it will be able to borrow at a cheaper cost of capital and deliver profits before long. “If they can do that, then it’s kind of a self-fulfilling prophecy,” BNP Paribas’s Slowinski said. “All that has to come together to increase confidence in the company and in the business model.” Tech Chart of the Day Top Tech Stories Tencent Holdings Ltd.’s early success with WorkBuddy may give the Chinese Internet giant a chance to catch up after lagging peers in the artificial intelligence race for the past few years. Intel Corp. raised $20 billion in an upsized share sale, a third more than it was targeting when it announced the deal Monday morning. US investment giants including Apollo Global Management Inc., Blackstone Inc., BlackRock Inc. and Brookfield Asset Management are partnering with Nvidia Corp. to source $500 billion in financing for artificial intelligence infrastructure. Anthropic PBC has struck a $9.1 billion deal with Riot Platforms Inc., a Bitcoin mining company that recently began selling AI data center capacity, people familiar with the matter said, underscoring the Claude maker’s efforts to secure enough computing power to meet its customers’ demand. Apple Inc. is still planning to offer a glass-centric overhaul of the iPhone for the device’s 20th anniversary, people familiar with the matter said, countering an analyst report that the move had been canceled. Earnings Due Earnings Premarket: Earnings Postmarket: --With assistance from Subrat Patnaik and David Watkins. Most Read from Bloomberg Businessweek Lululemon Is At War With Itself Supercharged by Social Media, the GLP-1 Boom Is Warping Teen Psyches Canada Stares Down ‘Quebexit’ Risk How Apple and India Built an Alternative iPhone Production Hub The $5 Billion Cosmetics Company Behind the High-Flying Rhode Brand ©2026 Bloomberg L.P.

Continued Growth in Same Store Revenue, Gross Profit and Unit Volume in the Second Quarter CHANDLER, Ariz., Aug. 11, 2026 /PRNewswire/ -- RideNow Group, Inc. (NASDAQ: RDNW), ("we", "our", the "Company", or "RideNow"), today announced financial results for the second quarter ended June 30, 2026. Key Second Quarter 2026 Highlights (Compared to Second Quarter 2025) Total revenue decreased 1.0%, primarily due to our store consolidation effort coupled with our former transportation services which ceased operations at the end of December 2025. On a same store sales basis, Powersports Revenue was up 3.0%, driven by a 1.7% increase in unit sales. Total gross profit was $84.8 million, up 1.1% as compared to $83.9 million. Selling, general & administrative expenses ("SG&A") were $65.0 million, or 76.7% of gross profit, compared to $66.7 million, or 79.5% of gross profit. Net income improved to $6.5 million as compared to a net loss of $32.2 million in the prior year, which included a franchise right impairment charge of $34.0 million. Adjusted EBITDA increased to $20.5 million from $17.2 million, up 19.2%. Commenting on the quarter, Chairman, Chief Executive Officer and President Michael Quartieri said, "I am incredibly proud of our team's execution and the substantial progress we have made on our "back to our roots" strategy. Our performance gains over the last year demonstrate that we're on the right trajectory. We remain committed to driving sustained profitable growth, and delivering long-term value for our shareholders." Second Quarter 2026 — Operating Results Key Operating Metrics Balance Sheet, Liquidity and Cash Flow The Company ended the quarter with $63.1 million in total cash, inclusive of restricted cash, and $174.4 million of non-vehicle net debt. Availability under the Company's powersports floor plan lines of credit totaled approximately $95.1 million as of June 30, 2026. Total Available Liquidity, defined as total cash plus availability under floorplan credit facilities, was $158.2 million as of June 30, 2026. Cash outflows from operating activities were $27.7 million for the six months ended June 30, 2026, compared to inflows of $4.0 million for the same period in 2025. Investor Conference Call The Company's management will host a conference call to discuss these results on August 11, 2026 at 4:30 p.m. Eastern Time. To access the conference call, United States callers may dial 1-800-717-1738 (1-646-307-1865 for callers outside of the United States) and enter conference ID 21498. A live and archived webcast will be accessible from the Company's Investor Relations website at https://investors.ridenow.com. About the Company RideNow Group, Inc. (NASDAQ: RDNW) is a powersports dealership group. We believe our powersports business is the largest powersports retail group in the United States, offering a wide selection of new and pre-owned motorcycles, all-terrain vehicles, utility terrain or side-by-side vehicles, personal watercraft, snowmobiles, and other powersports products. We also offer parts, apparel, accessories, finance & insurance products and services, and aftermarket products from a wide range of manufacturers. We are one of the largest purchasers of pre-owned powersports vehicles in the United States and utilize our proprietary RideNow Cash Offer tool to acquire vehicles directly from consumers. To learn more, please visit us online at https://www.ridenow.com. Forward-Looking Statements This press release contains "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act of 1995, which statements may be identified by words such as "expects," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning. Readers are cautioned not to place undue reliance on these forward-looking statements, which are based on our expectations as of the date of this press release and speak only as of the date of this press release. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Forward-looking statements contained in this press release include, but are not limited to, statements about our future results of operations and financial position, our ability to deliver continued growth and long-term shareholder value, business strategy and plans, including the anticipated benefits of our strategic initiatives, industry and business trends, the sufficiency of our liquidity and capital resources, our ability to refinance or repay our indebtedness on or prior to its maturity, including our ability to meet the refinancing milestones under our Credit Agreement, general macroeconomic and market conditions, growth opportunities, same store sales trends and momentum, and our objectives for future operations. Our actual future results and trends may differ materially depending on a variety of factors, including, but not limited to, the following: our ability to grow our business both organically and through strategic acquisitions and to realize our plans and strategies; our ability to acquire sufficient powersports inventory to satisfy consumer demand or our expectations for the business; our dependence on key personnel to operate our business and our ability to retain, attract, and integrate qualified personnel; internal control matters; our reliance on third-party financing providers to finance a substantial portion of our customers' powersports vehicle purchases and to supply extended protection products; the success of our marketing and branding efforts and our ability to attract new customers; adverse conditions affecting one or more of the powersports manufacturers with which we hold franchises, or their inability to deliver a desirable mix of vehicles; our dependence on manufacturer relationships and restrictions imposed by vehicle manufacturers; product liability claims and manufacturer safety recalls; natural disasters, adverse weather, and other disruptive events; our ability to adequately protect our intellectual property; and concentration of leases with entities controlled by our directors; our significant indebtedness and its effect on business flexibility; our need to refinance our indebtedness at or prior to its maturity, and our need for additional financing or capital for acquisitions or unforeseen circumstances; our dependence on floor plan facilities for inventory financing, which may be reduced or terminated; and interest rate risk in connection with floor plan payables and other debt instruments; sensitivity of the powersports industry to unfavorable economic conditions and other demand factors; changes in trade policies, including the imposition of tariffs; operating in a highly competitive market for powersports products and services; potential reduction or discontinuation of manufacturer sales incentive, warranty, or promotional programs; and seasonality and weather trends causing fluctuations in revenue and operating results; our reliance on Internet search engines to drive website traffic; potential disruption in service on our websites; cybersecurity risks and incidents affecting our operations and third-party providers; and compliance with privacy, security, and data processing laws and regulations regarding personal information; potential repeal or weakening of state laws protecting powersports retailers; compliance with a wide range of federal, state, and local laws and regulations; and exposure to various legal proceedings, as well as the factors listed under the heading "Forward-Looking Statements" and "Risk Factors" in the Company's SEC filings, as may be updated and amended from time to time. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Non-GAAP Measures To supplement its Unaudited Condensed Consolidated Financial Statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"), the Company uses the following non-GAAP financial measures: EBITDA, Adjusted EBITDA, Adjusted Free Cash Flow, Non-Vehicle Net Debt, and Adjusted SG&A (collectively the "non-GAAP financial measures"). The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that they provide useful information about operating results, enhance the overall understanding of our operating performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. The non-GAAP measures used by the Company in this press release may be different from the measures used by other companies. RideNow Group, Inc.Non-GAAP Measures(Unaudited)(amounts in millions) EBITDA and Adjusted EBITDA We define EBITDA as net income (loss) adjusted to add back non-floor plan interest expense, the impact of income taxes, depreciation and amortization. Adjusted EBITDA further adds back non-cash stock-based compensation, [management transition costs, certain litigation expenses not associated with ongoing operations, lease expense associated with favorable related party leases in excess of contractual lease payments, impairment of franchise rights, and certain other costs and credits, as these recoveries, charges and expenses are not considered a part of our core business operations and are not necessarily an indicator of ongoing, future company performance. EBITDA and Adjusted EBITDA are adjusted to reflect an addback for floor plan interest expense. Our industry typically treats interest expense on vehicle floor plan debt as an operating expense, as vehicle floor plan debt is integral to our operations and is collateralized by our powersports vehicles. Adjusted EBITDA is one of the primary metrics we use to evaluate the financial performance of our business. We present Adjusted EBITDA because we believe it is helpful in highlighting trends in our operating results and it is frequently used by analysts, investors and other interested parties to evaluate companies in our industry. A reconciliation of net income (loss) to EBITDA and Adjusted EBITDA is provided below: RideNow Group, Inc.Non-GAAP Measures(Unaudited)(amounts in millions) Adjusted Free Cash Flow Beginning with the period ended June 30, 2026, we now present our non-GAAP cash flow measures as Adjusted Free Cash Flow. We believe this revised metric provides investors with a more representative view of the cash generated by our core operations by incorporating borrowings from non-trade floor plan facilities into operating cash flows to align non-trade inventory financing cash flows with the underlying operational capital structure, as well as normalizing for period-over-period variations. We believe this metric is useful to investors because it provides an additional means to evaluate cash flow trends in the business before considering non-operational or unique working capital financing adjustments. We define Adjusted Free Cash Flow as GAAP cash flows (used in) or provided by operating activities, adjusted for the net proceeds from (payments on) non-trade floor plan facilities, and cash flows associated with business acquisitions and dispositions, less purchases of property and equipment. Adjusted Free Cash Flow has limitations in that it does not represent the total increase or decrease in the cash balance for the period, nor does it represent residual cash flow available for discretionary expenditures. Therefore, Adjusted Free Cash Flow should be evaluated alongside our Unaudited Condensed Consolidated Statement of Cash Flows prepared in accordance with GAAP. A reconciliation of cash flows from operating activities to Adjusted Free Cash Flow is provided below: Non-Vehicle Net Debt We define Non-Vehicle Net Debt as total principal of long-term debt, including current maturities, less unrestricted cash. Our restricted cash is principally related to vehicle floor plan debt and is therefore not part of this calculation. Vehicle floor plan debt and finance lease obligations are not included in this measure. We believe that Non-Vehicle Net Debt is useful to investors and analysts as a measure of our financial position. We use Non-Vehicle Net Debt to monitor and compare our financial position from period to period. A reconciliation of total long-term debt, including current maturities to Non-Vehicle Net Debt is provided below: RideNow Group, Inc.Non-GAAP Measures(Unaudited)(amounts in millions) Adjusted SG&A We define Adjusted SG&A as SG&A adjusted to deduct transaction costs, certain litigation expenses not associated with our ongoing operations, management transition costs and certain other costs, as these charges and expenses are not considered a part of our core business operations and are not necessarily an indicator of the ongoing run rate of our SG&A. We use Adjusted SG&A to measure our progress toward achieving our goals. Adjusted SG&A is a non-GAAP financial measure and should not be used as a replacement for SG&A reported in compliance with GAAP. Adjusted SG&A has certain limitations in that it does not represent the total SG&A for the period. Therefore, we believe it is important to evaluate Adjusted SG&A along with SG&A and our consolidated statements of operations. A reconciliation of SG&A to Adjusted SG&A is below: RideNow Group, Inc.Supplementary Data (Unaudited) Key Term Loan Credit Agreement Covenant Compliance Calculations as of June 30, 2026(1) View original content to download multimedia:https://www.prnewswire.com/news-releases/ridenow-group-inc-reports-second-quarter-2026-financial-results-302848856.html

As you might know, RideNow Group, Inc. (NASDAQ:RDNW) recently reported its quarterly numbers. It looks like the results were pretty good overall. While revenues of US$260m were in line with analyst predictions, statutory losses were much smaller than expected, with RideNow Group losing US$0.11 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Taking into account the latest results, the consensus forecast from RideNow Group's two analysts is for revenues of US$1.15b in 2026. This reflects a reasonable 5.2% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 94% to US$0.07. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$1.15b and losses of US$0.19 per share in 2026. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading their numbers and making a very favorable reduction to losses per share in particular. Check out our latest analysis for RideNow Group The average price target rose 38% to US$9.00, with the analysts signalling that the forecast reduction in losses would be a positive for the stock's valuation. These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the RideNow Group's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of RideNow Group'shistorical trends, as the 6.9% annualised revenue growth to the end of 2026 is roughly in line with the 6.9% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 6.2% per year. It's clear that while RideNow Group's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself. The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving. With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here. Plus, you should also learn about the 1 warning sign we've spotted with RideNow Group . Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Growth in Same Store Revenue, Gross Profit and Unit Volume in the First Quarter CHANDLER, Ariz., May 14, 2026 /PRNewswire/ -- RideNow Group, Inc. (NASDAQ: RDNW), ("we", "our", the "Company", or "RideNow"), today announced financial results for the first quarter ended March 31, 2026. Key First Quarter 2026 Highlights (Compared to First Quarter 2025) Powersports Revenue increased 6.4%, reaching $260.4 million, which represents an increase of $15.7 million. On a same store sales basis, Powersports Revenue was up 13.1%, driven by a 16.3% increase in unit sales. Powersports Gross profit was $71.6 million, up 8.3%. Selling, general & administrative expense ("SG&A") was $62.1 million, or 86.7% of total Company gross profit, compared to $61.1 million, or 90.9% of gross profit. Net loss improved 55.7% to a loss of $4.3 million compared to a net loss of $9.7 million. Adjusted EBITDA increased to $9.3 million from $7.0 million. Commenting on the quarter, Chairman, Chief Executive Officer and President Michael Quartieri said, "I am invigorated by our team's unrelenting focus on execution, as evidenced by our first quarter results. Our tactical plan combines near-term initiatives to improve financial performance with structural changes to elevate the Company's strategic direction. All of our effort is focused on driving long-term value creation for our shareholders, and our first quarter results are further evidence that we are on the right trajectory." First Quarter 2026 — Operating Results Key Operating Metrics Balance Sheet, Liquidity and Cash Flow The Company ended the quarter with $46.4 million in total cash, inclusive of restricted cash, and $190.7 million of non-vehicle net debt. Availability under the Company's powersports floor plan lines of credit totaled approximately $99.3 million as of March 31, 2026. Total Available Liquidity, defined as total cash plus availability under floorplan credit facilities, was $145.7 million as of March 31, 2026. Cash outflows from operating activities were $27.6 million for the first three months of 2026, compared to outflows of $6.9 million for the same period in 2025. Investor Conference Call The Company's management will host a conference call to discuss these results on May 14, 2026 at 4:30 p.m. Eastern Time. To access the conference call, United States callers may dial 1-800-717-1738 (1-646-307-1865 for callers outside of the United States) and enter conference ID 60701. A live and archived webcast will be accessible from the Company's Investor Relations website at https://investors.ridenow.com. About the Company RideNow Group, Inc. (NASDAQ: RDNW) is a powersports dealership group. We believe our powersports business is the largest powersports retail group in the United States, offering a wide selection of new and pre-owned motorcycles, all-terrain vehicles, utility terrain or side-by-side vehicles, personal watercraft, snowmobiles, and other powersports products. We also offer parts, apparel, accessories, finance & insurance products and services, and aftermarket products from a wide range of manufacturers. We are one of the largest purchasers of pre-owned powersports vehicles in the United States and utilize our proprietary RideNow Cash Offer tool to acquire vehicles directly from consumers. To learn more, please visit us online at https://www.ridenow.com. Forward-Looking Statements This press release contains "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act of 1995, which statements may be identified by words such as "expects," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning. Readers are cautioned not to place undue reliance on these forward-looking statements, which are based on our expectations as of the date of this press release and speak only as of the date of this press release. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Forward-looking statements contained in this press release include, but are not limited to, statements about our future results of operations and financial position, our ability to deliver continued growth and long-term shareholder value, business strategy and plans, including the anticipated benefits of our strategic initiatives, industry and business trends, the sufficiency of our liquidity and capital resources, our ability to refinance or repay our indebtedness on or prior to its maturity, including our ability to meet the refinancing milestones under our Credit Agreement, general macroeconomic and market conditions, growth opportunities, same store sales trends and momentum, and our objectives for future operations. Our actual future results and trends may differ materially depending on a variety of factors, including, but not limited to, the following: our ability to grow our business both organically and through strategic acquisitions and to realize our plans and strategies; our ability to acquire sufficient powersports inventory to satisfy consumer demand or our expectations for the business; our dependence on key personnel to operate our business and our ability to retain, attract, and integrate qualified personnel; internal control matters; our reliance on third-party financing providers to finance a substantial portion of our customers' powersports vehicle purchases and to supply extended protection products; the success of our marketing and branding efforts and our ability to attract new customers; adverse conditions affecting one or more of the powersports manufacturers with which we hold franchises, or their inability to deliver a desirable mix of vehicles; our dependence on manufacturer relationships and restrictions imposed by vehicle manufacturers; product liability claims and manufacturer safety recalls; natural disasters, adverse weather, and other disruptive events; our ability to adequately protect our intellectual property; and concentration of leases with entities controlled by our directors; our significant indebtedness and its effect on business flexibility; our need to refinance our indebtedness at or prior to its maturity, and our need for additional financing or capital for acquisitions or unforeseen circumstances; our dependence on floor plan facilities for inventory financing, which may be reduced or terminated; and interest rate risk in connection with floor plan payables and other debt instruments; sensitivity of the powersports industry to unfavorable economic conditions and other demand factors; changes in trade policies, including the imposition of tariffs; operating in a highly competitive market for powersports products and services; potential reduction or discontinuation of manufacturer sales incentive, warranty, or promotional programs; and seasonality and weather trends causing fluctuations in revenue and operating results; our reliance on Internet search engines to drive website traffic; potential disruption in service on our websites; cybersecurity risks and incidents affecting our operations and third-party providers; and compliance with privacy, security, and data processing laws and regulations regarding personal information; potential repeal or weakening of state laws protecting powersports retailers; compliance with a wide range of federal, state, and local laws and regulations; and exposure to various legal proceedings, as well as the factors listed under the heading "Forward-Looking Statements" and "Risk Factors" in the Company's SEC filings, as may be updated and amended from time to time. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Non-GAAP Measures To supplement its Unaudited Condensed Consolidated Financial Statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"), the Company uses the following non-GAAP financial measures: EBITDA, Adjusted EBITDA, Free Cash Flow, Non-Vehicle Net Debt, and Adjusted SG&A (collectively the "non-GAAP financial measures"). The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that they provide useful information about operating results, enhance the overall understanding of our operating performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. The non-GAAP measures used by the Company in this press release may be different from the measures used by other companies. RideNow Group, Inc. Non-GAAP Measures (Unaudited) (amounts in millions) EBITDA and Adjusted EBITDA We define EBITDA as net loss adjusted to add back interest expense, the impact of income taxes, depreciation and amortization. Adjusted EBITDA further adds back non-cash stock-based compensation, management transition costs, certain litigation expenses not associated with ongoing operations, and certain other costs and credits, as these recoveries, charges and expenses are not considered a part of our core business operations and are not necessarily an indicator of ongoing, future company performance. Adjusted EBITDA is reduced by floor plan interest expense. Our industry typically treats interest expense on vehicle floor plan debt as operating expense, as vehicle floor plan debt is integral to our operations and is collateralized by our powersports vehicles. Adjusted EBITDA is one of the primary metrics we use to evaluate the financial performance of our business. We present Adjusted EBITDA because we believe it is helpful in highlighting trends in our operating results and it is frequently used by analysts, investors and other interested parties to evaluate companies in our industry. A reconciliation of net loss to EBITDA and Adjusted EBITDA is provided below: RideNow Group, Inc. Non-GAAP Measures (Unaudited) (amounts in millions) Free Cash Flow We define Free Cash Flow as cash flows from operating activities less capital expenditures of property and equipment (not including acquisitions). We utilize Free Cash Flow when assessing the Company's sources of liquidity and capital resources. We believe that Free Cash Flow is helpful in understanding the Company's capital requirements and provides an additional means to reflect the cash flow trends in the Company's business. We believe Free Cash Flow is useful to investors because it represents the cash that our operating businesses generate, before taking into account non-operational cash movements. Free Cash Flow has certain limitations in that it does not represent the total increase or decrease in the cash balance for the period, nor does it represent the residual cash flow for discretionary expenditures. Therefore, we think it is important to evaluate Free Cash Flow along with our consolidated statement of cash flows. A reconciliation of cash flows from operating activities to Free Cash Flow is provided below: Non-Vehicle Net Debt We define Non-Vehicle Net Debt as total principal of long-term debt, including current maturities, less unrestricted cash. Our restricted cash is principally related to vehicle floor plan debt and is therefore not part of this calculation. Vehicle floor plan debt and finance lease obligations are not included in this measure. We believe that Non-Vehicle Net Debt is useful to investors and analysts as a measure of our financial position. We use Non-Vehicle Net Debt to monitor and compare our financial position from period to period. A reconciliation of total long-term debt, including current maturities to Non-Vehicle Net Debt is provided below: RideNow Group, Inc. Non-GAAP Measures (Unaudited) (amounts in millions) Adjusted SG&A We define Adjusted SG&A as SG&A adjusted to deduct transaction costs, certain litigation expenses not associated with our ongoing operations, management transition costs and certain other costs, as these charges and expenses are not considered a part of our core business operations and are not necessarily an indicator of the ongoing run rate of our SG&A. We use Adjusted SG&A to measure our progress toward achieving our goals. Adjusted SG&A is a non-GAAP financial measure and should not be used as a replacement for SG&A reported in compliance with GAAP. Adjusted SG&A has certain limitations in that it does not represent the total SG&A for the period. Therefore, we believe it is important to evaluate Adjusted SG&A along with SG&A and our consolidated statements of operations. A reconciliation of SG&A to Adjusted SG&A is below: RideNow Group, Inc. Supplementary Data (Unaudited) Key Term Loan Credit Agreement Covenant Compliance Calculations as of March 31, 2026(1) View original content to download multimedia:https://www.prnewswire.com/news-releases/ridenow-group-inc-reports-first-quarter-2026-financial-results-302772827.html

This article first appeared on GuruFocus. Revenue: $260.4 million, a 6.4% increase over the prior year. Adjusted EBITDA: $9.3 million, a 32.9% increase from the previous year. Same-Store Sales Revenue: Increased 13.1%. Same-Store Sales Gross Profit: Increased 12.2%. Total Major Units Sold: 14,694 units, an 11.4% increase from last year. New Powersports Major Unit Sales: 9,322 units, a 16.3% increase. Pre-Owned Unit Sales: 4,593 units, a 6.6% increase. New Unit Gross Margins: Improved to 14.2% from 13.6% last year. Pre-Owned Gross Margins: Improved to 16.9% from 16.2% last year. Fixed Operations Revenue: $46.7 million. Finance and Insurance Revenue: $21.8 million. Total Cash: $46.4 million, inclusive of restricted cash. Non-Vehicle Net Debt: $190.7 million. Total Available Liquidity: $145.7 million. Cash Outflows from Operating Activities: $27.6 million for the quarter. Warning! GuruFocus has detected 7 Warning Signs with RDNW. Is RDNW fairly valued? Test your thesis with our free DCF calculator. Release Date: May 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. RideNow Group Inc (NASDAQ:RDNW) reported a 6.4% increase in first-quarter revenue, totaling $260.4 million. Adjusted EBITDA increased by 32.9% to $9.3 million, marking the fourth consecutive quarter of year-over-year improvement. Same-store sales saw a significant increase, with units sold rising by 16.3% and revenue increasing by 13.1%. The SEC concluded its investigation with no enforcement action against RideNow Group Inc (NASDAQ:RDNW). The company is well-positioned for growth through highly accretive acquisitions, a key pillar of its value-creation strategy. The Vehicle Transportation Services business saw a revenue decrease of $5.5 million as it was wound down at the end of 2025. Cash outflows from operating activities increased to $27.6 million, primarily due to additional inventory purchases. Gross profit per unit (GPU) for fixed operations and finance and insurance teams decreased compared to the prior year. The company is facing temporary inflation pressures, particularly from higher gas prices due to geopolitical conflicts. Interest rates are creeping higher, potentially impacting consumer monthly payments despite current stability. Q: Can you discuss the current consumer demand trends for new versus pre-owned vehicles, and the impact of promotional activities on new vehicle sales? A: Michael Quartieri, CEO, explained that Q1 saw strong growth in new units due to higher tax refunds, which increased consumer buying power. Despite temporary inflation from higher gas prices, consumer demand remains strong. The shift from used to new vehicles is more about consumer preference than promotional activities. Q: What is the current availability of used vehicles, and how does it compare to your inventory goals? A: Quartieri noted that they aim to maintain a three- to four-month supply of inventory and are currently closer to three months. The market for used vehicles is solid, and they are using cash effectively to build inventory, which will help generate more gross profit in the coming months. Q: How are interest rates affecting consumer payments, and what trends are you observing in consumer financial behavior? A: Quartieri stated that interest rates offered to customers are slightly lower year-over-year, and consumers are better off financially than last year. There is no significant deterioration in loan defaults or cancellations of service contracts, indicating stable consumer financial behavior. Q: How are tariffs, specifically Section 232, impacting your OEM partners and potentially affecting your business? A: Quartieri mentioned that OEM partners are currently absorbing the tariffs, maintaining the status quo for 2026. There is a wait-and-see approach, but no immediate plans to pass these costs onto consumers. Q: What are your goals for refinancing debt, and where do you aim to position your leverage by year-end? A: Quartieri aims for flexibility over the next four to five years, with a focus on improving operations and cash flow to deleverage. Currently, leverage is around the low-3s, with a long-term target of 2 times leverage, achieved through better business operations. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in RideNow Group, Inc.? Here are five stocks we like better. RideNow Group posted stronger Q1 results, with revenue up 6.4% to $260.4 million and adjusted EBITDA rising 32.9% to $9.3 million, marking its fourth straight quarter of year-over-year EBITDA improvement. Operating trends improved across the business: same-store units sold climbed 16.3%, same-store revenue rose 13.1%, and gross margins expanded in both new and pre-owned vehicle sales. Management said the turnaround is still early but emphasized cost discipline, refinancing progress, and expectations for higher adjusted EBITDA and free cash flow in 2026, while also noting OEMs are absorbing tariff costs for now. These 2 Powersports Stocks Can Rev Up Your Portfolio RideNow Group (NASDAQ:RDNW) reported higher first-quarter revenue and adjusted EBITDA as the powersports retailer continued to cite improving same-store sales and benefits from operational changes that management described as part of an ongoing turnaround effort. Chairman, Chief Executive Officer and President Michael Quartieri said first-quarter revenue totaled $260.4 million, up 6.4% from the prior year, while adjusted EBITDA rose 32.9% to $9.3 million. Quartieri said the quarter marked the company’s fourth consecutive period of year-over-year adjusted EBITDA improvement. → Micron Investors Face a High-Stakes Moment After the Latest Rally “The momentum we’ve created in our business over the back half of 2025 has continued into 2026,” Quartieri said on the company’s earnings call. Management pointed to same-store sales as a key indicator of improving performance. Quartieri said same-store units sold increased 16.3% in the quarter, while same-store revenue rose 13.1%. Same-store gross profit increased 12.2%, which he said marked the fourth consecutive quarter of growth in that metric. → How Bad Could Tesla’s Cybertruck Recall Be for Shares? Chief Financial Officer Joshua Barsetti said same-store revenue was $259 million in the first quarter, compared with $228.9 million a year earlier. Same-store gross profit rose to $71.6 million from $63.8 million. Same-store unit sales totaled 14,449, compared with 12,422 in the prior-year quarter. Barsetti said the same-store figures exclude five stores permanently closed as of year-end 2025 and in-fleet related units. Total company revenue increased to $260.4 million from $244.7 million in the prior-year quarter. Barsetti said the increase was driven by higher sales of new and pre-owned retail vehicles, partially offset by a $5.5 million decrease from the company’s vehicle transportation services business, which was wound down at the end of 2025. Excluding Wholesale Express, revenue increased 8.9% year over year, he said. → Reading the Stripes: Is The Industrial Recession Over? RideNow sold 14,694 total major units during the quarter, an increase of 1,508 units, or 11.4%, from the same period last year. New powersports major unit sales totaled 9,322, up 1,309 units, or 16.3%. Pre-owned unit sales totaled 4,593, up 286 units, or 6.6%. Barsetti said higher powersports unit sales and improved revenue across categories helped lift total gross profit by $5.5 million to $71.6 million. New unit gross margins improved to 14.2% from 13.6% a year earlier, while pre-owned gross margins increased to 16.9% from 16.2%. The company’s fixed operations business, which includes parts, service and accessories, generated $46.7 million in revenue and $22 million in gross profit. Gross profit per unit for fixed operations was $1,581, down $107 from the prior-year quarter. Finance and insurance revenue totaled $21.8 million, with gross profit per unit of $1,571, down from $1,713 a year earlier. Consolidated adjusted SG&A expenses were $60.4 million, or 84.3% of gross profit, compared with $57.5 million, or 85.6% of gross profit, in the same quarter last year. Quartieri said the company remains focused on execution, cost reduction and restoring discipline in store performance. He said RideNow is still in the “early innings” of its turnaround and emphasized getting “the right people in the right place at the right time.” Quartieri also said the Securities and Exchange Commission concluded its investigation and recommended no enforcement action against the company. He added that RideNow continues to make progress on refinancing efforts and expects to share more details in the coming weeks. Barsetti said RideNow ended the quarter with $46.4 million in total cash, including restricted cash. Non-vehicle net debt was $190.7 million, and availability under short-term revolving floor plan credit facilities totaled about $99.3 million. Total available liquidity, defined as cash plus floor plan availability, was $145.7 million at quarter-end. Cash outflows from operating activities were $27.6 million for the three months ended March 31, compared with $6.9 million in the prior-year period. Barsetti said the increased use of cash was primarily tied to additional inventory purchases to support revenue growth and prepare for the company’s higher selling season. In response to a question from Texas Capital Securities analyst Eric Wold, Quartieri said RideNow expected growth in the first quarter because of easier comparisons in January and February, but was “pleasantly surprised” by March demand. He said higher tax refunds helped provide more buying power for the company’s middle-class consumer. Quartieri said April demand was affected somewhat by higher gas prices tied to conflict in the Middle East, but the company was still seeing year-over-year growth on a comparable-store basis, though not at March’s pace. On new versus used vehicles, Quartieri said he did not see “exceptionally different levels of promotion” on new products and characterized the shift as more about consumer preference. He said RideNow generally aims to carry three to four months of used inventory and is currently closer to three months. He added that the company would buy more used inventory if it could do so while protecting margins. Asked by Baird analyst Craig Kennison about interest rates and consumer health, Quartieri said the rates offered to customers were slightly lower year over year. He said monthly payments remain a key factor for consumers and that RideNow has not seen deterioration in loan defaults or cancellations of extended service contracts and prepaid maintenance programs. On tariffs, Quartieri said OEM partners have communicated that they are maintaining the status quo for 2026 and absorbing tariff costs themselves, at least for the foreseeable future. Quartieri said RideNow is seeking refinancing flexibility for the next four to five years and expects to deleverage as operations and cash flow improve. He said the “right amount of leverage” for the business in a more normalized state would be around two times. Looking ahead, Quartieri said RideNow expects to deliver higher adjusted EBITDA and increased free cash flow throughout 2026. He also said the company is positioned to return to growth through “highly accretive acquisitions,” which he described as a key pillar of RideNow’s value creation strategy. RideNow Group, Inc (NASDAQ: RDNW) is a leading U.S. retailer of powersports vehicles, offering both new and pre-owned inventory to enthusiasts and recreational riders. The company's dealerships carry a diverse lineup of motorcycles, all-terrain vehicles (ATVs), side-by-sides, personal watercraft and snowmobiles from major manufacturers. In addition to vehicle sales, RideNow Group provides comprehensive service and maintenance, aftermarket parts and accessories and a range of financing and protection plans tailored to powersports customers. Founded in 2004 and headquartered in Houston, Texas, RideNow Group has grown through a combination of organic expansion and strategic acquisitions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "RideNow Group Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.