RideNow Group (RDNW)
NASDAQ:RDNW
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RideNow Group
(NASDAQ:RDNW)
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Rating:52Neutral
Price Target:
$7.00
▲(5.26% Upside)
Action:ReiteratedDate:04/01/26
The score is held down primarily by weak financial fundamentals—negative equity/high leverage, multi-year revenue declines, and inconsistent cash generation—despite improving operating trends. Technical momentum is a key offset, with the stock trading above major moving averages and positive MACD. Earnings-call tone is moderately supportive due to EBITDA and same-store improvements, but valuation remains constrained by ongoing net losses and no indicated dividend yield.
Positive Factors
Adjusted EBITDA improvement
A large and sustained uplift in adjusted EBITDA demonstrates meaningful operating leverage and margin recovery in core dealerships. Higher recurring EBITDA improves coverage for interest and supports refinancing options, making future cash generation and deleveraging more achievable if sustained.
Negative Factors
Negative equity and elevated leverage
Negative shareholders' equity and high leverage materially weaken financial flexibility and increase refinancing cost and covenant sensitivity. This structural balance-sheet impairment constrains strategic options, raises default risk in stress scenarios, and makes durable recovery dependent on cash flow improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Adjusted EBITDA improvement
A large and sustained uplift in adjusted EBITDA demonstrates meaningful operating leverage and margin recovery in core dealerships. Higher recurring EBITDA improves coverage for interest and supports refinancing options, making future cash generation and deleveraging more achievable if sustained.
Read all positive factors
RideNow Group (RDNW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$255.44M
Dividend YieldN/A
Average Volume (3M)42.13K
Price to Earnings (P/E)―
Beta (1Y)2.12
Revenue Growth-12.43%
EPS Growth66.92%
CountryUS
Employees1,928
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)-0.09
Shares Outstanding38,361,702
10 Day Avg. Volume37,302
30 Day Avg. Volume42,131
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)-16.11
Price to Sales (P/S)0.19
P/FCF Ratio-15.03
Enterprise Value/Market Cap2.61
Enterprise Value/Revenue0.62
Enterprise Value/Gross Profit2.26
Enterprise Value/Ebitda-303.10
Forecast
1Y Price Target
$7.00Price Target Upside5.26% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)-0.28
Revenue Forecast (FY)$1.17B
RideNow Group Business Overview & Revenue Model
Company Description
RumbleON, 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 distribute...
RideNow Group Earnings Call Summary
Earnings Call Date:Mar 09, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call presents a materially improved operating performance and clear signs of operational turnaround: large Q4 adjusted EBITDA improvement, multi-quarter same-store gains, stronger gross margins, unit mix improvement toward higher-margin pre-owned sales, and meaningful SG&A reductions. These operational wins are tempered by lower total revenue due to the intentional wind-down of Wholesale Express, a sharp year-over-year decline in operating cash flow and free cash flow (driven by the absence of prior-year one-time proceeds), a modest full-year unit decline, and leverage/refinancing considerations. Overall, the tone is constructive and indicates momentum in core powersports operations, but liquidity, cash generation and the loss of Wholesale Express remain key near-term risks.Positive Updates
Adjusted EBITDA Surge (Q4 and Full Year)
Q4 adjusted EBITDA was $9.7M, up 341% from $2.2M in Q4 last year (improvement of over $7.5M). Full-year adjusted EBITDA was $46.2M, a 40.4% increase year-over-year.
Negative Updates
Revenue Decline Driven by Wholesale Express Wind-Down
Total Q4 revenue was $256.9M vs $269.6M prior year, a decline of ~4.7% primarily due to the near-complete loss and shutdown of the Wholesale Express transportation business. Prior-year Wholesale Express contributed ~$58M in revenue and ~$13.4M in gross profit.
Read all updates
Q4-2025 Updates
Positive
Negative
Adjusted EBITDA Surge (Q4 and Full Year)
Q4 adjusted EBITDA was $9.7M, up 341% from $2.2M in Q4 last year (improvement of over $7.5M). Full-year adjusted EBITDA was $46.2M, a 40.4% increase year-over-year.
Read all positive updates
Company Guidance
Management guided that momentum should continue into Q1 as the macro environment improves, positioning the company for a potential term‑loan refinancing and aiming to drive further adjusted EBITDA and increased free cash flow; they pointed to Q4 adjusted EBITDA of $9.7M (up 341% YoY from $2.2M) and full‑year adjusted EBITDA of $46.2M (up 40.4%) as evidence of progress. They emphasized the same‑store strength underpinning that outlook — Q4 same‑store revenue +6.3% to $256.9M, same‑store gross profit +13.8% to $66.8M and same‑store unit sales 15,420 vs 14,320 — plus improved margins (new unit margin 13.2%, pre‑owned 14.4%), lower adjusted SG&A ($59.9M in Q4; $243.8M FY, down 9.7%), and better fixed‑ops and F&I GPU; balance‑sheet metrics cited included $42.9M cash, $189.3M nonvehicle net debt and $152.6M total available liquidity, with FY free cash flow of $10.3M (vs $97.4M prior year), all of which management said support disciplined deployment of cash and a return to acquisitive growth in 2026.RideNow Group Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
18
Very Negative
Cash Flow
27
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.08B | 1.21B | 1.37B | 1.79B | 934.73M |
| Gross Profit | 289.00M | 314.30M | 359.90M | 452.66M | 158.18M |
| EBITDA | 41.70M | 38.90M | -55.90M | -230.40M | -8.88M |
| Net Income | -52.40M | -78.60M | -215.50M | -261.51M | -9.72M |
Balance Sheet | |||||
| Total Assets | 673.60M | 755.20M | 926.30M | 1.03B | 1.05B |
| Cash, Cash Equivalents and Short-Term Investments | 29.50M | 85.30M | 58.90M | 48.58M | 48.97M |
| Total Debt | 554.00M | 665.70M | 771.60M | 730.15M | 522.39M |
| Total Liabilities | 686.10M | 718.50M | 820.70M | 821.20M | 614.03M |
| Stockholders Equity | -12.50M | 36.70M | 105.60M | 206.01M | 431.29M |
Cash Flow | |||||
| Free Cash Flow | -13.40M | 97.00M | -54.70M | -31.51M | -45.58M |
| Operating Cash Flow | -7.60M | 99.40M | -35.50M | -18.89M | -35.99M |
| Investing Cash Flow | -2.70M | 900.00K | -19.10M | -82.20M | -376.56M |
| Financing Cash Flow | -43.50M | -80.60M | 99.50M | 107.70M | 461.00M |
RideNow Group Technical Analysis
Positive
6.65
Price Trends
6.24
Positive
5.90
Positive
4.64
Positive
Market Momentum
0.13
Negative
53.69
Neutral
46.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RDNW, the sentiment is Positive. The current price of 6.65 is above the 20-day moving average (MA) of 6.41, above the 50-day MA of 6.24, and above the 200-day MA of 4.64, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 53.69 is Neutral, neither overbought nor oversold. The STOCH value of 46.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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% | |
52 Neutral | $255.44M | -3.84 | -268.06% | ― | -12.43% | 66.92% | |
49 Neutral | $173.42M | -695.01 | -55.36% | ― | ― | ― | |
48 Neutral | $92.07M | -0.70 | -2.60% | ― | 2.07% | -117.51% | |
47 Neutral | $85.59M | -12.98 | -38.32% | ― | -81.31% | 87.13% | |
39 Underperform | $7.55M | -34.24 | ― | ― | 32.90% | ― |
* Consumer Cyclical Sector Average
RDNW
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6.65
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154.79%
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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.