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This call is being recorded on Thursday, May 14th of 2026. I would now like to turn the conference over to Jerry Makia, Vice President of Finance. Please go ahead, sir.

Thank you, operator. Good afternoon, everyone, and thank you for joining us for RideNow's first quarter 2026 earnings conference call. Joining me on the call today are Michael Quartieri, RideNow's Chairman, Chief Executive Officer, and President, and Joshua Barsetti, RideNow's Chief Financial Officer. Our first quarter results are detailed in the press release issued this afternoon, and supplemental information will be available in our Form 10-Q once filed. Before we begin, I would like to remind you that comments made by management during this conference call may contain forward-looking statements, including, but not limited to, RideNow's market opportunities and future financial results. All forward-looking statements involve risks and uncertainties, which could affect RideNow's actual results and cause actual results to differ materially from forward-looking statements made by or on behalf of RideNow.

A discussion of material risks and important factors that could affect our results can be found in our filings with the SEC, which are available on our investor relations website and at sec.gov. This conference call also contains time-sensitive information that is accurate only as of the date of this live broadcast, Thursday, May 14, 2026. RideNow assumes no obligation to revise or update any forward-looking statements, whether written or oral, to reflect events or circumstances after the date of this conference call, except as required by law. Also, the following discussion contains non-GAAP financial measures. For a reconciliation of these non-GAAP financial measures, please refer to our earnings release. Now I'll turn the call over to Michael Quartieri.

Good afternoon, everyone, and thank you for joining us for RideNow's first quarter 2026 earnings call. The momentum we've created in our business over the back half of 2025 has continued into 2026. I'm pleased to report that our first quarter revenue totaled $260.4 million, which represents an increase of 6.4% over prior year. An adjusted EBITDA of $9.3 million, which represents a 32.9% increase and marks our fourth consecutive quarter of year-over-year improvement. As we continue to progress with our turnaround, we expect that there will be incremental wins and lessons learned along the way.

We are in the early innings, and it's extremely important to maintain a level head and consistency in the diligence and effort that goes into the journey and remain laser-focused on improving what we can control within the four walls of our business, which is getting the right people in the right place at the right time, taking the right actions. We believe this focus on execution and continuous improvement across all aspects of our operations across the stores and our back office support center is and will continue to drive the momentum in our results. On a same-store sales basis, units sold in Q1 increased 16.3% and revenue increased 13.1%, marking our third consecutive quarter of growth in these metrics. Same-store sales gross profit increased 12.2%, marking our fourth consecutive quarter of growth.

Our tactical plan, balanced on near-term initiatives to improve financial performance and structural changes to advance the strategic direction of the company, is expected to continue to drive long-term value creation for our shareholders. In the near term, initiatives of getting the right leadership in place, a maniacal focus on cost reduction, and reinstalling a disciplined approach to store performance are continuing to progress and are positioning us to generate even further improvement in our operating results, especially as the sales cycle turns positive. Our team is aligned with clear goals and a culture of accountability. My conviction in our ability to execute and deliver improved results continues to grow each day.

I'm pleased to report that the SEC concluded its investigation and recommended no enforcement action against the company. We continue to make progress with our refinancing effort, which I look forward to sharing more details in the coming weeks. We are poised to build on our momentum and expect to deliver more adjusted EBITDA and increase free cash flow throughout 2026. Of course, at every turn, we intend to deploy our resources with the discipline of an owner-oriented company. Importantly, more to that point, as we proceed through 2026, we are well-positioned to return to growth through highly accretive acquisitions, a key pillar of our value creation strategy going forward. With that, I'll turn the call over to Josh for a more detailed discussion of the Q1 results.

Thanks, Mike. Good afternoon, everyone. I'll start by reviewing our financial results for the first quarter of 2026, followed by an overview of our balance sheet. During the quarter, we generated total revenue of $260.4 million, compared to $244.7 million in the prior year quarter. This increase was driven by higher sales of new and pre-owned retail vehicles. Offsetting the revenue increase was a decrease of $5.5 million in our vehicle transportation services business, which was wound down at the end of 2025. Excluding Wholesale Express, revenue in the first quarter of 2025 increased 8.9% year-over-year. Additionally, adjusted EBITDA increased 32.9% to $9.3 million, up from $7 million in the first quarter of 2025.

Consolidated adjusted SG&A expenses were $60.4 million or 84.3% of gross profit, down 130 basis points compared to $57.5 million or 85.6% of gross profit in the same quarter last year. During the quarter, we sold 14,694 total major units, up 1,508 units or 11.4% from the same quarter last year. Total new powersports major unit sales were 9,322, up 1,309 units or 16.3% compared to Q1 of last year. Pre-owned unit sales totaled 4,593, up 286 units or 6.6%.

Higher total powersport unit sales, coupled with continued improvement in revenue across each of our revenue categories, led to a $5.5 million improvement in total gross profit dollars, which totaled $71.6 million during the first quarter of 2026. New unit gross margins improved to 14.2% for the quarter compared to 13.6% for the same quarter last year. Pre-owned gross margins also improved from 16.2% in last year's first quarter to 16.9% in the first quarter of the current year. Our fixed operations business, consisting of parts, service, and accessories, delivered $46.7 million in revenue and $22 million in gross profit. GPU for our fixed operations business was $1,581, down $107 compared to the first quarter of last year.

Our finance and insurance teams delivered $21.8 million in revenue or GPU of $1,571, down $142 compared to $1,713 in the prior year's quarter. The composition of same stores for these periods excludes the five stores permanently closed as of the year-end 2025 and in-fleet related units. On a same-store basis, revenue was $259 million during the first quarter of 2026 as compared to $228.9 million in 2025, a 13.1% increase. Gross profit was $71.6 million this year compared to $63.8 million in the prior year period, a 12.2% increase.

Total unit sales was 14,449 in Q1 of 2026 compared with 12,422 in Q1 of 2025. Q1 marks the third consecutive quarter of same-store growth in revenue and units sold and the fourth consecutive quarter of same-store growth in gross profit. Turning to the balance sheet, we ended the quarter with $46.4 million in total cash inclusive of restricted cash. Non-vehicle net debt was $190.7 million, and availability under our short-term revolving floor plan credit facilities totaled approximately $99.3 million. Total available liquidity, defined as total cash plus availability under the floor plan credit facilities at the end of the first quarter totaled $145.7 million.

Cash outflows from operating activities was $27.6 million for the 3 months ended March 31, 2026, and free cash flow reduced to $228.2 million as compared to $6.9 million in cash outflows from operating activities and $7.4 million in free cash flow for the same prior year period. The increase in use of cash during the period was primarily related to additional purchases of inventory to support revenue growth and in preparation for our higher selling season. With that, we'd like to begin the question and answer session. I'll turn the call back over to the operator now to open the lines.

Thank you. Ladies and gentlemen, we will now begin the question and answer session. We will pause for a moment to compile the Q&A roster. Our first question comes from the line of Eric Wold from Texas Capital Securities. Your line is open.

Thank you. Good afternoon, guys. A couple questions, I guess. I guess first off, just general question, talk about what you're seeing with the consumer out there in terms of demand, your new versus pre-owned. Obviously very strong growth in new units versus in the quarter versus pre-owned. Obviously at a higher ASP. I guess, you know, how aggressive is promotional activity still on the new vehicles with your OEM partners, and how much is that driving that shift into them?

Yeah. Look, great question. I think when we're looking at the consumer and we're looking at our Q1 results and then how that flows into April, you know, one thing is a good Q1, 'cause we rolled over, I'd say a pretty slow period a year ago in January and February. We expected the growth in Q1 definitely with the, I'd say the easier comp in January, February. We were pleasantly surprised with the demand in March. I think the benefit of higher tax refunds certainly gave a bit more buying power to our middle-class consumer that we see. As we rolled in Sorry, we got a little back feedback there.

As we rolled into April, I think the conflict in the Middle East was driving up higher gas prices, dampened that a little bit. What we're seeing still is year-over-year growth on a comp store sales basis. It's just not to the extent that we saw in March. We're still very positive on the outlook on what we're seeing there and the strength of the consumer, despite I think what is gonna be temporary inflation around what we're seeing with gas prices. From a promotional mix between new and used product, we did see a stronger used market for us last year.

I think that's really kinda turned its tide, with the products that are out there now from a used or, sorry, from a new perspective, I think it's just a general kinda ebb and flow between new and used for market consumers. There's not a lot of new or exceptionally different levels of promotion that are taken into the news, I think it's really more about consumer preferences at this point.

Helpful. Just a follow-up question. From a used standpoint, what are you seeing out there in terms of, you know, the kind of availability of used vehicles out there, you know, versus your expectation, how much you're able to build in the quarter into the spring? You know, just what does the supply look like out there versus kind of what you'd like to buy for the stores?

Yeah. Look, we always try to carry right around that three to four-month supply of inventory. Right now we're closer to the three months versus four months. The ability to find the right inventory is always available and out there for us. It's a matter of what you wanna pay for it to get there and to protect your margins. At this point, we're seeing a solid market out there. We built the level in which we're comfortable with. If we could buy a little bit more, we would buy a little bit more.

As you see in the use of cash, we've used our cash wisely from the excess from the operating results that we've had and deployed that effectively in our used inventory, to help generate even more incremental gross profit as we're selling those units in the coming months.

Perfect. Thank you.

Thank you.

Our next question is from Craig Kennison from Baird. Your line is open.

Hey, good afternoon. Thank you for taking my questions as well. Wanted to follow up on Eric Wold's line of questions around the economy in general. I'm curious, you know, you mentioned tax refund season, oil prices. What are you seeing with respect to interest rates and the impact on the monthly payment for your consumer? We're starting to see that creep higher again.

Year-over-year, interest rates for what we're seeing offered to our customers are slightly lower. I think what you always come down to when you're buying these types of units, it's really about the monthly payment as it is more about what the overall cost of the unit is. From this perspective, that consumer seems fine. Better off this year than they were a year ago, despite what we're seeing from gas prices. We've looked closely at defaults on loans as well as cancellations on, you know, extended service contracts, prepaid maintenance programs, things to that effect, and we're not seeing any deterioration right now in the consumer.

Great. That's helpful. Another topic, sort of flowing through the powersports industry is tariffs and Section 232 specifically. We've got one major OEM that's, you know, faces half a billion dollars in incremental tariff from that. What are you hearing from your OEM partners about how, you know, tariffs may, you know, try to pass through from them to you to consumers?

Yeah. I think what we've heard from all of them so far is there's status quo for 2026, just as it was for 25. Although the tariffs are in place, they're at this point absorbing them. I think if there's any OEM at this point that steps out of line from that, I think the other ones are gonna be willing to hold the ship as a, as a tool of absorbing and taking market share from them. It is a little bit of a wait and see mentality right now, but at least for the foreseeable future through all of 26, all of which have communicated to us that they're staying status quo and absorbing it themselves.

Great. Maybe lastly, I think you teased an update to your balance sheet coming soon. Like, what would you say your goals are in terms of refinancing debt, and where would you like leverage to land by year-end?

Look, I think from a objectives perspective, look, we want flexibility in moving forward over the next 4 to 5 years. We're looking for a piece of paper that's going to cover that for us. Obviously, as we look forward to improving operations and cash flow, we're going to be looking to deleverage accordingly. When I think of leverage, you know, right now we've been bouncing around that 4 mark. We got down to the mid 3s in the middle of the year. We're now closer to the low 3s, and I just continue that trajectory going forward. I think the right amount of leverage for this business when you're in a perfect state is going to be somewhere around that 2 times leverage.

At this point, we're just gonna continue to work hard in fixing what we have and get there the right way by just operating the business better.

Great. Thank you.

Thank you.

There are no questions at this time. This concludes today's conference call. Thank you for participating. You may now disconnect.

Good afternoon, ladies and gentlemen, and welcome to the RideNow Group, Inc. fourth quarter 2025 earnings conference call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Monday, March 9, 2026. I would now like to turn the conference over to Jerene Makia, VP of Finance. Please go ahead, sir.

Thank you, operator. Good afternoon, everyone, and thank you for joining us for RideNow's fourth quarter and full year 2025 earnings conference call. Joining me on the call today are Michael Quartieri, RideNow's Chairman, Chief Executive Officer, and President, and Josh Barsetti, RideNow's Chief Financial Officer. Our Q4 and full year results are detailed in the press release issued this afternoon, and supplemental information will be available in our Form 10-K once filed. Before we begin, I would like to remind you that comments made by management during this conference call may contain forward-looking statements including, but not limited to, RideNow's market opportunities and future financial results. All forward-looking statements involve risks and uncertainties which could affect RideNow's actual results and cause actual results to differ materially from forward-looking statements made by or on behalf of RideNow.

A discussion of material risks and important factors that could affect our results can be found in our filings with the SEC, which are available on our investor relations website and at sec.gov. This conference call also contains time-sensitive information that is accurate only as of the date of this live broadcast, Monday, March 9th, 2026. RideNow assumes no obligation to revise or update any forward-looking statements, whether written or oral, to reflect events or circumstances after the date of this conference call, except as required by law. Also, the following discussion contains non-GAAP financial measures. For a reconciliation of these non-GAAP financial measures, please refer to our earnings release issued earlier today. Now, I'll turn the call over to Michael Quartieri.

Good afternoon, everyone, and thank you for joining us for RideNow's fourth quarter 2025 earnings call. Well, what a difference a year makes. Over this past year, we've made tremendous progress in our turnaround, and we are only scratching the surface of our full potential. You've heard me state on every call a common theme of remaining laser-focused on improving what we can control within the four walls of our business. Getting the right people in the right place at the right time, doing the right actions. Focusing on execution and continuous improvement across all aspects of our operations across the stores and our back-office support center is driving the momentum in our results. This momentum has been building in our business throughout the year. In Q2, we generated year-over-year improvement in adjusted EBITDA.

In Q3 and now again in Q4, we delivered year-over-year improvement in gross profit and adjusted EBITDA. All of this was achieved despite the nearly complete loss of our transportation business, Wholesale Express. Effective as of the end of December, we've shut down all operations at Wholesale Express to focus all of our attention and effort on the powersports segment. We expect this momentum to continue in Q1 as the macro environment continues to improve, which will help position us for a potential refinancing of our term loan in the near future. Our year-over-year improvement in our top-line metrics in powersports, coupled with a maniacal focus on driving waste out of our operations, led to $9.7 million in adjusted EBITDA for Q4, a year-over-year improvement of over $7.5 million.

Our tactical plan, balanced on near-term initiatives to improve financial performance and structural changes to reset the strategic direction of the company, is continuing to drive long-term value creation for our shareholders. The near-term initiatives of getting the right leadership in place, reevaluating the cost structure, and reinstalling a disciplined approach to store performance are continuing to progress and are positioning us to generate even further improvement in our operating results as the sales cycle continues to turn positive. During Q4, we took further action with our store portfolio. We sold our two locations in Southern California. In Tucson, we consolidated our Indian store into our neighboring RideNow location and consolidated our two Harley-Davidson locations to under one roof.

As a result of the disposition of our two Southern California locations, coupled with the closures of our stores in Sturgis, Cincinnati, and our used-only store in Houston earlier in the year, we have enhanced our financial disclosures to provide same-store sales data, which Josh will take you through shortly. Our team is aligned with clear goals, performance metrics, and a culture of accountability. My conviction in our ability to execute and deliver improved results continues to grow each day. We are poised to build from our momentum to deliver even more adjusted EBITDA and increase free cash flow, which we intend to deploy with a discipline of an owner-oriented company. As we proceed into 2026, we are well-positioned to return to growth through acquisition, which, coupled with our focus on operational excellence, is the value creation engine that RideNow was founded upon.

With that, I'll turn the call over to Josh for a more detailed discussion of the Q4 and full year results.

Thanks, Mike. Good afternoon, everyone. I'll start by reviewing our financial results for the fourth quarter and full year 2025, followed by an overview of our balance sheet. During the quarter, we generated total revenue of $256.9 million, compared to $269.6 million in the prior year quarter. This decrease was driven by the expected reduction of our Wholesale Express business, which, as Mike mentioned, was wound down at the end of the quarter. Excluding Wholesale Express, our revenue was flat year-over-year. I'm also happy to report that our adjusted EBITDA increased 341% to $9.7 million, up from $2.2 million in last year's fourth quarter.

Adjusted SG&A expenses were $59.9 million or 84.5% of gross profit, compared to $62.3 million or 92.3% of gross profit in the same quarter last year. During the quarter, we sold 15,642 major units, up 294 units or 1.9% from the same quarter last year. Total new powersports major unit sales were 9,924, down 293 units or 2.9% compared to Q4 of last year. Pre-owned unit sales totaled 4,125, up 200 units or 5.1%.

Higher total powersports unit sales, coupled with continued improvement in revenue across each of our revenue categories, led to a $6.5 million improvement in powersports gross profit dollars, which totaled $70.7 million during the fourth quarter. New unit gross margins improved to 13.2% for the quarter, compared to 10.8% for the same quarter last year. Pre-owned gross margins also improved from 12.3% in last year's fourth quarter to 14.4% in the fourth quarter of the current year. Our fixed operations businesses, consisting of parts, service, and accessories, delivered $48.5 million in revenue and $22.7 million in gross profit. GPU for our fixed operations business was $1,615, up $60 compared to the fourth quarter of last year.

Our finance and insurance teams delivered $24.1 million in revenue or GPU of $1,715, up $117 compared to $1,598 in the prior year's quarter. As Mike mentioned, as a result of the store closures during 2025, for the fourth quarter and going forward, we will report certain same-store sales metrics, including same-store revenue, gross profit, and unit volume for our powersports segment. Since this is the first time we have pre-presented information on a same-store basis, we included a supplemental table in the earnings release to provide quarterly information for 2025 and 2024. The composition of the same stores of these periods excludes the five stores permanently closed as of year-end 2025 and any fleet-related units.

Same-store revenue was $256.9 million during the fourth quarter of 2025 as compared to $241.6 million in 2024, a 6.3% increase. Gross profit was $66.8 million this year compared to $58.7 million in the prior year, a 13.8% increase. Total unit sales was 15,420 in Q4 of 2025 compared with 14,320 in Q4 of 2024. Q4 is the second consecutive quarter of same-store growth in revenue and units sold and the third consecutive quarter of same-store growth in gross profit. For the full year of 2025, we finished with $1.08 billion in revenue and gross profit of $298 million.

Wholesale Express revenue in the prior year was $58 million, and gross profit was $13.4 million. Adjusted SG&A was lower by $26.2 million and came in at $243.8 million, a 9.7% reduction year-over-year. Adjusted EBITDA was $46.2 million, 40.4% higher than the prior year. Additionally, we sold a total of 61,894 powersports units this year compared to 64,988 last year. Turning to the balance sheet, we ended the quarter with $42.9 million in total cash, inclusive of restricted cash. Non-Vehicle Net Debt was $189.3 million, and availability under the short-term revolving floor plan credit facilities totaled approximately $123.1 million.

Total available liquidity, defined as unrestricted cash plus availability under floor plan credit facilities at the end of the year totaled $152.6 million. Cash inflows from operating activities were $15.9 million for the year ended December 31, 2025, and free cash flow was $10.3 million as compared to $99.4 million in cash flows from operating activities and $97.4 million in free cash flow from the same period last year. Last year's cash from operating activities and free cash flow were impacted by proceeds from the sale of a finance receivable portfolio and the reduction of excess major unit inventory during the period. With that, we'd like to begin the question-and-answer session. I'll turn the call back over to the operator now to open the lines.

Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press star followed by the number one on your touch tone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by the number two. If you're using a speakerphone, please lift the handset before pressing any keys. Your first question comes from the line of Eric Wold from Texas Capital Securities. Your line is now open.

Thank you. Good afternoon. A couple of questions. I guess one, obviously you've done a fantastic job kind of taking costs out of the system as per your plan, you know, starting last year. Give us a sense of how much was taken out last year. How much actually flowed through the P&L versus kind of what the annualized amount would have been? How much is left, do you think, still to potentially take out going forward?

In terms of what was taken out during the year, I don't have that exact number in front of me. From an annualized perspective, we did a lot of that cost takeout toward the prior, toward the tail end of the year. I would say going forward, there's opportunity there that maybe we're not seeing in 2025. We do believe that there's continued opportunity to take costs out of the business. We have really focused on the front end in 2025. In 2026, we're really focusing on the back office and looking at what we can do there to make things more efficient, from a cost perspective.

Perfect. Then a follow-up question. You know, with the store closures, specifically on the Houston pre-owned store closure, maybe talk about the decision to close that location and whether you believe that that's a model that can work in other markets or if that's just not the right direction, if it was, you know, market-specific or the model itself that wasn't right.

I think it's a combination of a couple of things. One, used only stores for us from a profitability perspective. It's better for us to just have that inventory in the existing four walls of our RideNow locations at the RV stores, as there's no incremental cost associated with moving that inventory. Once until you can make the investment to get into a more scalable model for us and where we wanted to achieve and where we are as a company, making that investment, just wasn't gonna pan out for what the returns would be by just putting that extra inventory into existing four walls of our buildings.

Makes sense. Thank you. Appreciate it.

You got it.

As a reminder, if you have any questions or any follow-up, please press star one. Our next question comes from the line of Craig Kennison from Baird. Your line is now open.

Hey, good afternoon. Thank you for taking my question. I'm wondering if you could comment on year-to-date retail trends for new and used powersports units and maybe address whether the oil price spike, which I know is very recent, and tax refund season has had any impact on your results.

I'll take it. Look, I think there's a couple of ways to look at what current trends are right now. One, if you're looking at it from an OEM perspective, OEM inventories are healthier today than they were a year ago, we're seeing positive influence there on our trends. In addition to that, when you're just thinking the consumer, the big beautiful bill has helped them from a tax refund perspective as refunds are up about 9%-10% right now. Obviously, as you see, the number of refunds is, I say, returns processed is slightly behind.

We think there's still upside to come from that, in what it helps the middle class with the No Tax on Tips, No Tax on Overtime, etc., that everybody already well aware of what the Big Beautiful Bill brings. The other aspect on trends is around interest rates. Interest rates being lower and the fact that approximately two-thirds of our customers are financing. As long as interest rates continue to decline, it provides more purchasing power on our customers to be able to take on more from a payment perspective. With all of that in place, that's why you've kind of seen that throughout the back half of the year where momentum improved from Q2 to Q3 to Q4, and we've continued to see that into Q1. Yeah, although the uncertainty in the market with the Middle East crisis that's ongoing right now, you know, look, we all woke up this morning to a bunch of red lines on our stock apps, and by the time we got to the end of the day, they were all pretty much green. The one thing I will highlight is the level of uncertainty is the only constant that we're dealing with. From our perspective, we're just focusing on what's in our four walls, getting that right, and the rest will work itself out.

Thanks. You've done a nice job improving the status of your inventory. Could you comment on how fresh your inventory is today, then put that in the context of, you know, the competitive landscape? Have your competitors made sufficient progress on inventory in order to kind of reduce the overall discounting in the environment?

We believe. Well, I'll start with overall industry. It seems everybody has taken those appropriate steps. We're not seeing a lot of discounting across the board from all of our locations, or not say locations, but from our competitors. From an overall health perspective, our inventory, you know. Look, we wanna stay between three to four months worth of inventory, and we're right in line with that. And at the same time, you know, the vast majority of our inventory is below the 120-day category perspective. you know, look, I think we're happy with our inventory. We see good returns from our inventory. You know, would we always like to have a bit more on the used inventory side, but that's fine. you know, the reality is you gotta buy used inventory that's gonna make yourself profitable.

We're not in a position where we feel the need that we need to go chase inventory at this point in time.

Thank you.