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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:
$4.50
▲(0.45% Upside)
RideNow Group's overall stock score is primarily impacted by its financial struggles, with declining revenue and high leverage risks. Despite strong technical indicators suggesting bullish momentum, the poor valuation metrics and mixed earnings call results contribute to a moderate overall score.
RideNow Group (RDNW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$170.47M
Dividend YieldN/A
Average Volume (3M)91.02K
Price to Earnings (P/E)―
Beta (1Y)2.57
Revenue Growth-14.27%
EPS Growth67.06%
CountryUS
Employees1,928
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)-0.85
Shares Outstanding38,002,422
10 Day Avg. Volume47,632
30 Day Avg. Volume91,019
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 Cap3.71
Enterprise Value/Revenue0.57
Enterprise Value/Gross Profit2.16
Enterprise Value/Ebitda451.40
Forecast
1Y Price Target
$4.50Price Target Upside0.45% Upside
Rating ConsensusHold
Number of Analyst Covering1
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 MoneyRumbleON generates revenue primarily through the sale of vehicles, including motorcycles and ATVs, to both consumers and dealerships. The company's revenue model includes direct sales, where they purchase vehicles from sellers and then resell them at a profit. Additionally, RumbleON earns money through financing options offered to customers, facilitating vehicle purchases through third-party lenders. Key revenue streams also include trade-in services, where customers can exchange their old vehicles for credit towards new purchases. Partnerships with financial institutions and power sports manufacturers further enhance RumbleON's ability to offer competitive financing solutions, contributing significantly to its earnings.
RideNow Group Earnings Call Summary
Earnings Call Date:Aug 11, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While there were significant achievements in cost management, adjusted EBITDA, and strategic initiatives like rebranding and debt refinancing, the company faced substantial challenges with revenue decline, especially in new unit sales and Wholesale Express revenue. The strong performance in the pre-owned segment and operational improvements were notable positives.Q2-2025 Updates
Positive Updates
Strong Pre-Owned Segment Performance
Pre-owned unit sales increased by 10.2%, and pre-owned gross margins improved to 18.8% from 17% in the same quarter last year.
Adjusted EBITDA Improvement
Despite an 11% decline in revenue, adjusted EBITDA increased by $1 million compared to the same quarter last year.
Cost Discipline and SG&A Reduction
Total company adjusted SG&A expenses were reduced by $5.9 million, an 8.3% decrease compared to the same quarter last year.
Strategic Rebranding and Leadership Initiatives
The company is rebranding to RideNow Group Inc., aligning corporate and store operations, and bringing in leaders with retail and dealership experience.
Debt Refinancing and Lower Interest Rates
The company extended its term loan maturity by 13 months and lowered its annual interest rate by 0.5%, resulting in a $3.4 million reduction in annualized cash interest expense.
Negative Updates
Revenue Decline
Revenue decreased by 11% compared to the same quarter last year, driven by lower new unit volume and a reduction in revenue from the vehicle transportation business.
New Unit Sales Decline
Total new powersport major unit sales were down 11.5% compared to the same quarter last year.
Wholesale Express Revenue Collapse
Wholesale Express revenue declined by 91.4%, with gross profit decreasing by 93.5% compared to the same quarter last year.
Decline in Parts Services and Accessories Revenue
Parts services and accessories revenue declined by 7.9%, and gross profit declined by 5%.
Company Guidance
During RumbleOn, Inc.'s second quarter 2025 earnings call, several key financial metrics and strategic initiatives were highlighted. The company reported approximately $300 million in revenue and an adjusted EBITDA of $17.2 million, marking a $1 million increase compared to the same quarter last year despite an 11% revenue decline. The adjusted SG&A expenses were $64.9 million, representing 77.4% of gross profit, a decrease from $70.8 million or 78.8% from the previous year. The Powersports segment sold 17,117 major units, down 3.3%, with new unit sales declining by 11.5%, while pre-owned unit sales increased by 10.2%. Gross profit for major unit sales rose by $700,000, with new unit gross margins improving to 13.2% from 12.3% and pre-owned margins to 18.8% from 17%. The company's asset-light vehicle transportation services group experienced a significant reduction in revenue, down 91.4% year-over-year. RumbleOn also executed an amendment to its term loan agreement, extending maturity by 13 months to September 30, 2027, and reducing its annual interest rate by 0.5%, resulting in an annualized cash interest expense reduction of $3.4 million. The company's rebranding to RideNow Group Inc. and planned NASDAQ ticker symbol change from RMBL to RDNW reflects its strategic shift. Total available liquidity was reported at $185.7 million, with $59.8 million in total cash.RideNow Group Financial Statement Overview
Summary
RideNow Group is facing significant financial challenges. The income statement shows declining revenue and profitability, with a negative net profit margin. The balance sheet is concerning with negative stockholders' equity and high leverage risks. Cash flow analysis indicates some cash generation ability, but declining free cash flow growth is a concern.Income Statement
RideNow Group's income statement shows declining revenue and profitability. The TTM data reveals a negative revenue growth rate of -3.22% and a net profit margin of -9.87%, indicating financial struggles. The gross profit margin remains relatively stable at 26.4%, but the negative EBIT and EBITDA margins highlight operational inefficiencies. Overall, the company faces challenges in maintaining revenue and profitability.45
Neutral
Balance Sheet
The balance sheet reflects a concerning financial position with a negative stockholders' equity in the TTM period, leading to an undefined debt-to-equity ratio. The return on equity is negative, indicating losses relative to equity. The equity ratio is also negative, suggesting financial instability and high leverage risks. The company's financial health is under pressure due to high debt levels and negative equity.30
Negative
Cash Flow
Cash flow analysis shows a mixed picture. The TTM free cash flow growth rate is negative at -6.07%, but the operating cash flow to net income ratio is positive at 0.24, indicating some cash generation capability. The free cash flow to net income ratio is high at 0.95, suggesting efficient cash conversion despite negative net income. However, the overall cash flow position is weakened by declining free cash flow growth.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.11B | 1.21B | 1.37B | 1.79B | 934.73M | 416.43M |
| Gross Profit | 292.90M | 314.30M | 359.90M | 452.66M | 158.18M | 31.63M |
| EBITDA | 1.40M | 38.90M | -55.90M | -230.40M | -8.88M | -16.22M |
| Net Income | -109.50M | -78.60M | -215.50M | -261.51M | -9.72M | -31.64M |
Balance Sheet | ||||||
| Total Assets | 712.30M | 755.20M | 926.30M | 1.03B | 1.05B | 76.98M |
| Cash, Cash Equivalents and Short-Term Investments | 59.80M | 85.30M | 58.90M | 48.58M | 48.97M | 1.47M |
| Total Debt | 604.20M | 665.70M | 771.60M | 730.15M | 522.39M | 58.20M |
| Total Liabilities | 717.00M | 718.50M | 820.70M | 821.20M | 614.03M | 72.41M |
| Stockholders Equity | -4.70M | 36.70M | 105.60M | 206.01M | 431.29M | 4.57M |
Cash Flow | ||||||
| Free Cash Flow | 72.70M | 97.00M | -54.70M | -31.51M | -45.58M | 14.82M |
| Operating Cash Flow | 76.20M | 99.40M | -35.50M | -18.89M | -35.99M | 17.14M |
| Investing Cash Flow | -600.00K | 900.00K | -19.10M | -82.20M | -376.56M | -2.28M |
| Financing Cash Flow | -86.90M | -80.60M | 99.50M | 107.70M | 461.00M | -18.07M |
RideNow Group Technical Analysis
Positive
4.48
Price Trends
3.29
Positive
2.75
Positive
3.36
Positive
Market Momentum
0.36
Positive
66.03
Neutral
79.82
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 4.48 is above the 20-day moving average (MA) of 4.16, above the 50-day MA of 3.29, and above the 200-day MA of 3.36, indicating a bullish trend. The MACD of 0.36 indicates Positive momentum. The RSI at 66.03 is Neutral, neither overbought nor oversold. The STOCH value of 79.82 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 |
|---|---|---|---|---|---|---|---|
56 Neutral | $170.47M | ― | -246.90% | ― | -14.27% | 67.06% | |
49 Neutral | $147.82M | -0.78 | -58.11% | ― | -90.19% | 79.52% | |
38 Underperform | $7.78M | -0.11 | ― | ― | -99.25% | 90.38% | |
38 Underperform | $8.14M | -0.02 | -264.32% | ― | -32.14% | 68.58% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
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RideNow Group Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
RideNow Group Amends Warrants and Extends Expiration
Neutral
Aug 28, 2025
On August 25, 2025, RideNow Group, Inc. issued unsecured subordinated promissory notes totaling $10 million to Stone House Capital Management, LLC, Face Canyon LLC, and Mark Tkach. The funds were used to prepay loans under the company’s Senior Credit Agreement. These notes bear a 13% interest rate and mature in 2028. Additionally, on August 28, 2025, the company amended and restated warrants, adjusting the exercise price and extending the expiration date to August 10, 2030.
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.