RideNow Group (RDNW) AI Stock Analysis

• Market Cap: $220.41M
• Dividend Yield: N/A
• Average Volume (3M): 42.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.32
• Revenue Growth: -12.43%
• EPS Growth: 66.92%
• Country: US
• Employees: 1,928
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): -0.09
• Shares Outstanding: 38,017,500
• 10 Day Avg. Volume: 37,302
• 30 Day Avg. Volume: 42,131
• PEG Ratio: 0.10
• Price to Book (P/B): -16.11
• Price to Sales (P/S): 0.19
• P/FCF Ratio: -15.03
• Enterprise Value/Market Cap: 3.02
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 2.25
• Enterprise Value/Ebitda: -302.52
• 1Y Price Target: $7.00
• Price Target Upside: 20.90% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.28
• Revenue Forecast (FY): $1.17B

• Rating: 48 Neutral
• Price Target: $6.00 ▲(3.63% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is held down primarily by weak financial performance—net losses, negative equity with high leverage, and a 2025 shift to negative operating/free cash flow. Technicals are neutral with some longer-term improvement but limited near-term momentum. The latest earnings call was a relative positive (better EBITDA, cost cuts, and interest savings), but it does not fully offset balance-sheet and cash-flow risk.

Positive Factors

Powersports segment growth

Sustained unit growth and improving new-unit gross margins create a durable revenue engine less tied to transportation swings. Higher margins on new units expand gross-profit capacity per sale, supporting operating leverage as RideNow consolidates stores into larger, more efficient locations.

Adjusted EBITDA improvement

A multi-million dollar rise in adjusted EBITDA demonstrates the business can extract more operating profit from existing sales through cost discipline and margin improvements. This strengthens run-rate cash coverage for fixed costs and interest, improving medium-term financial resilience if sustained.

Debt profile improvements

Extending maturities and reducing interest expense materially lowers near-term refinancing pressure and annual cash outflows. These structural fixes lengthen the liquidity runway and improve free-cash-flow breakeven, enhancing the company's ability to execute its store consolidation and turnaround plan.

Negative Factors

Multi-year revenue decline

A persistent revenue downtrend erodes scale economies and the gross-profit base critical to covering fixed costs and servicing debt. If revenue contraction continues, margin gains and cost cuts may be insufficient to restore sustainable profitability and to deleverage the balance sheet over the medium term.

High leverage and negative equity

Negative equity and elevated leverage constrain strategic flexibility, increase covenant and refinancing risk, and raise creditor scrutiny. This structural capital-structure weakness can force suboptimal choices (asset sales, aggressive cost cutting) and limit investment needed for durable recovery.

Deteriorating operating cash flow

A swing to negative operating and free cash flow signals working-capital or operational instability that reduces internal funding for growth and debt service. With high leverage, persistent cash burn raises the risk of needing external financing or asset sales, undermining long-term execution of the turnaround plan.

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 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.

RideNow Group Financial Statement Overview

Summary

Financials are challenged: revenue has declined for three straight years and 2025 still posted a net loss. Leverage is the biggest risk with very high debt and slightly negative equity in 2025, limiting flexibility. Cash flow also weakened sharply in 2025 with negative operating and free cash flow, increasing liquidity pressure despite some operating-margin improvement (positive EBIT/EBITDA).

Income Statement

Revenue has contracted for three straight annual periods (2023–2025), including a modest decline in 2025 (about -1%). Profitability is still weak: 2025 posted a net loss (about -4.8% net margin), though earnings quality is improving versus 2023–2024 as operating profit turned positive in 2025 (positive EBIT and EBITDA margins). Gross margin has been relatively steady in the mid‑20% range, but it has not translated into consistent bottom-line profitability.

Balance Sheet

Leverage is the key concern. Total debt remains very high while equity has deteriorated sharply, turning slightly negative in 2025, which makes the capital structure strained and limits financial flexibility. Although total debt has come down from 2023 to 2025, the negative equity position and elevated leverage profile create refinancing and covenant risk if operating performance weakens.

Cash Flow

Cash generation is volatile and deteriorated recently: 2025 produced negative operating cash flow and negative free cash flow, reversing the strong positive cash flow in 2024. This swing suggests working-capital or operational instability, and it reduces near-term flexibility given the leveraged balance sheet. While free cash flow has at times compared favorably to net losses (e.g., 2024), the latest year points to renewed cash burn.

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

• Technical Analysis Sentiment: Neutral
• Last Price: 5.79
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RDNW, the sentiment is Neutral. The current price of 5.79 is below the 20-day moving average (MA) of 6.31, below the 50-day MA of 6.00, and above the 200-day MA of 4.32, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 43.07 is Neutral, neither overbought nor oversold. The STOCH value of 14.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RDNW.

RideNow Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CRMT	49 Neutral	$99.80M	-0.70	-2.60%	―	2.07%	-117.51%
RDNW	48 Neutral	$220.41M	-3.84	-268.06%	―	-12.43%	66.92%
SDA	46 Neutral	$178.52M	-695.01	-55.36%	―	―	―
VRM	44 Neutral	$61.46M	-1.31	-77.02%	―	-81.31%	87.13%
AZI	40 Underperform	$13.86M	-0.01	―	―	32.90%	―