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RideNow Group (RDNW)
NASDAQ:RDNW
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RideNow Group
(NASDAQ:RDNW)
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Rating:56Neutral
Price Target:
$5.00
▲(1.83% Upside)
RideNow Group's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues and high leverage. Despite positive technical indicators and a favorable earnings call, the negative valuation and financial instability weigh heavily on the stock's attractiveness. The recent appointment of a new CFO adds a positive note, but significant challenges remain.
Positive Factors
Powersports Segment Growth
Growth in the powersports segment indicates strong demand and market position, which can drive future revenue and profitability.
Debt Management Achievements
Improved debt terms enhance financial flexibility and reduce interest expenses, supporting long-term financial health.
New CFO Appointment
The new CFO brings extensive experience, potentially strengthening financial operations and aligning with growth objectives.
Negative Factors
Declining Revenue
Declining revenue indicates challenges in maintaining sales momentum, which can impact long-term growth and market competitiveness.
High Leverage
High leverage and negative equity can strain financial resources, limiting the company's ability to invest in growth opportunities.
Cash Flow Reduction
Reduced cash flow from operations may hinder the company's ability to fund operations and invest in strategic initiatives.
RideNow Group (RDNW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$186.91M
Dividend YieldN/A
Average Volume (3M)42.13K
Price to Earnings (P/E)―
Beta (1Y)2.34
Revenue Growth-12.43%
EPS Growth66.92%
CountryUS
Employees1,928
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)-0.04
Shares Outstanding38,017,500
10 Day Avg. Volume37,302
30 Day Avg. Volume42,131
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)5.23
Price to Sales (P/S)0.16
P/FCF Ratio1.98
Enterprise Value/Market Cap2.79
Enterprise Value/Revenue0.48
Enterprise Value/Gross Profit1.77
Enterprise Value/Ebitda-84.02
Forecast
1Y Price Target
$4.00Price Target Upside-18.53% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
RideNow Group Business Overview & Revenue Model
Company DescriptionRumbleON, Inc. operates a technology-based omnichannel platform to aggregate and distribute pre-owned vehicles in North America. It operates through three segments: Powersports, Automotive, and Vehicle Logistics. The Powersports segment distributes motorcycles. The Automotive segment distributes cars and trucks. The Vehicle Logistics segment provides automotive transportation services between dealerships and auctions. Its platform offers ability to buy, sell, trade, and finance new and pre-owned vehicles online or in store for dealers and consumers. The company was formerly known as Smart Server, Inc. and changed its name to RumbleON, Inc. in February 2017. RumbleON, Inc. was incorporated in 2013 and is based in Irving, Texas.
How the Company Makes MoneyRideNow Group generates revenue primarily through the sale of new and used powersports vehicles, including motorcycles and ATVs. The company also earns income through the sale of parts and accessories, which are essential for vehicle maintenance and customization. Additionally, RideNow Group offers financing services, earning income from interest on loans and financing agreements. The company often partners with major manufacturers for exclusive dealership rights, which can enhance its product offerings and drive sales. Furthermore, service and maintenance fees contribute to its revenue, as customers return to the dealership for repairs and upkeep of their vehicles. Overall, the combination of vehicle sales, parts and accessories, financing services, and maintenance creates a diversified revenue stream for RideNow Group.
RideNow Group Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 12, 2026
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with significant improvements in adjusted EBITDA, powersports segment growth, and effective cost and debt management. However, the decline in vehicle transportation revenue and reduced cash flow are challenges that need addressing.Q3-2025 Updates
Positive Updates
Improved Adjusted EBITDA
Adjusted EBITDA reached $12.3 million, marking an $5.5 million improvement year-over-year, despite a 4.7% revenue decline in vehicle transportation.
Powersports Segment Growth
The powersports segment saw a year-over-year improvement with 15,949 total major units sold, up 3.9%. New unit gross margins improved to 12.6% from 11.3%.
Successful Cost Management
SG&A expenses decreased by $2.8 million (4.4%), representing 80.9% of gross profit compared to 86.5% in the prior year.
Debt Management Achievements
The company extended its term loan maturity to September 2027 and lowered its annual cash interest by approximately $4.4 million.
Strategic Relocation and Rebranding
Completed the name change to RideNow Group, Inc. and relocated headquarters back to Chandler, Arizona.
Negative Updates
Revenue Decline in Vehicle Transportation
Revenue in the vehicle transportation business fell by $14.1 million, leading to a gross profit decrease to $300,000 from $3.5 million.
Cash Flow Reduction
Cash inflows from operating activities were $15.5 million for the 9 months ended September 30, compared to $68.6 million in the same period last year.
Company Guidance
During the RideNow Group's third-quarter 2025 earnings call, the company announced several key metrics highlighting their financial performance and strategic initiatives. RideNow reported a year-over-year gross profit increase despite challenges in their transportation services segment, achieving an adjusted EBITDA of $12.3 million, which reflects a $5.5 million improvement. This growth was fueled by a 3.9% rise in total major unit sales within their powersports segment, including a 3.3% increase in pre-owned unit sales, leading to a gross profit of $75.7 million. The company also focused on cost management, reducing adjusted SG&A expenses by $2.8 million compared to the previous year. Additionally, RideNow completed strategic financial maneuvers, such as lowering interest rates and extending their term loan maturity to 2027, which is projected to save $4.4 million annually in cash interest. The company is implementing a plan to optimize their store portfolio by consolidating smaller locations into larger "aircraft carrier" stores, exemplified by their new Fort Worth, Texas location.RideNow Group Financial Statement Overview
Summary
RideNow Group is facing significant financial challenges with declining revenue, negative profitability, and high leverage. The negative net profit margin and unfavorable debt-to-equity ratio highlight financial instability. Despite some efficiency in cash flow management, the overall financial health is concerning.Income Statement
RideNow Group's income statement shows declining revenue with a negative growth rate of -1.26% TTM. The company has a negative net profit margin of -9.87% TTM, indicating ongoing losses. Gross profit margin remains relatively stable at 26.41% TTM, but EBIT and EBITDA margins are negative, reflecting operational challenges.35
Negative
Balance Sheet
The balance sheet reveals significant financial instability with a negative stockholders' equity of -$6.9 million TTM, resulting in a highly unfavorable debt-to-equity ratio of -128.55 TTM. The return on equity is also negative, indicating poor returns on shareholders' investments.20
Very Negative
Cash Flow
Cash flow analysis shows a decline in free cash flow growth by -43.74% TTM. However, the operating cash flow to net income ratio is positive at 0.24 TTM, suggesting some ability to cover net losses with operating cash flow. Free cash flow to net income ratio is relatively high at 0.95 TTM, indicating efficient cash flow management despite losses.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.10B | 1.21B | 1.37B | 1.79B | 934.73M | 416.43M |
| Gross Profit | 294.60M | 314.30M | 359.90M | 452.66M | 158.18M | 31.63M |
| EBITDA | -6.20M | 38.90M | -55.90M | -230.40M | -8.88M | -16.22M |
| Net Income | -102.40M | -78.60M | -215.50M | -261.51M | -9.72M | -31.64M |
Balance Sheet | ||||||
| Total Assets | 699.40M | 755.20M | 926.30M | 1.03B | 1.05B | 76.98M |
| Cash, Cash Equivalents and Short-Term Investments | 35.40M | 85.30M | 58.90M | 48.58M | 48.97M | 1.47M |
| Total Debt | 415.30M | 665.70M | 771.60M | 730.15M | 522.39M | 59.11M |
| Total Liabilities | 386.70M | 718.50M | 820.70M | 821.20M | 614.03M | 72.41M |
| Stockholders Equity | -6.90M | 36.70M | 105.60M | 206.01M | 431.29M | 4.57M |
Cash Flow | ||||||
| Free Cash Flow | 40.90M | 97.00M | -54.70M | -31.51M | -45.58M | 14.82M |
| Operating Cash Flow | 46.30M | 99.40M | -35.50M | -18.89M | -35.99M | 17.14M |
| Investing Cash Flow | -1.50M | 900.00K | -19.10M | -82.20M | -376.56M | -2.28M |
| Financing Cash Flow | -59.70M | -80.60M | 99.50M | 107.70M | 461.00M | -18.07M |
RideNow Group Technical Analysis
Negative
4.91
Price Trends
5.55
Negative
4.83
Positive
3.66
Positive
Market Momentum
-0.10
Positive
31.55
Neutral
24.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RDNW, the sentiment is Negative. The current price of 4.91 is below the 20-day moving average (MA) of 5.72, below the 50-day MA of 5.55, and above the 200-day MA of 3.66, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 31.55 is Neutral, neither overbought nor oversold. The STOCH value of 24.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RDNW.
RideNow Group Risk Analysis
RideNow Group disclosed 36 risk factors in its most recent earnings report. RideNow Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
RideNow Group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $186.91M | -1.76 | -268.06% | ― | -12.43% | 66.92% | |
49 Neutral | $213.34M | -14.50 | -2.60% | ― | 2.07% | -117.51% | |
46 Neutral | $201.98M | -17.51 | -48.66% | ― | ― | ― | |
44 Neutral | $100.14M | -0.98 | -52.02% | ― | -81.31% | 87.13% | |
39 Underperform | $7.30M | 0.13 | ― | ― | 32.90% | ― |
* Consumer Cyclical Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.