RideNow Group (RDNW) AI Stock Analysis

• Market Cap: $215.08M
• Dividend Yield: N/A
• Average Volume (3M): 42.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.33
• Revenue Growth: -12.43%
• EPS Growth: 66.92%
• Country: US
• Employees: 1,928
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): -0.04
• Shares Outstanding: 38,017,500
• 10 Day Avg. Volume: 37,302
• 30 Day Avg. Volume: 42,131
• PEG Ratio: 0.03
• Price to Book (P/B): 5.23
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 1.98
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $4.00
• Price Target Upside: -29.20% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $5.50 ▼(-2.65% Downside)

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 Business Overview & Revenue Model

Company Description

RideNow Group (RDNW) is a leading provider in the powersports industry, specializing in the sale of motorcycles, ATVs, and other recreational vehicles. The company operates a network of dealerships across the United States, offering a wide range of products from renowned manufacturers. In addition to vehicle sales, RideNow Group provides financing options, accessories, parts, and service maintenance, positioning itself as a comprehensive resource for powersports enthusiasts.

How the Company Makes Money

RideNow 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 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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 5.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 5.65 is above the 20-day moving average (MA) of 5.49, above the 50-day MA of 4.65, and above the 200-day MA of 3.32, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 56.17 is Neutral, neither overbought nor oversold. The STOCH value of 63.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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%
RDNW	56 Neutral	$215.08M	-2.02	-268.06%	―	-12.43%	66.92%
CRMT	54 Neutral	$223.30M	-15.18	-2.60%	―	2.07%	-117.51%
SDA	46 Neutral	$209.12M	―	-48.66%	―	―	―
AZI	39 Underperform	$8.06M	7.03	―	―	32.90%	―
VRM	38 Underperform	$129.05M	-1.27	-52.02%	―	-81.31%	87.13%

RideNow Group Corporate Events

RideNow Group Appoints New CFO Joshua Barsetti

RideNow Group, Inc. has appointed Joshua J. Barsetti as its new Executive Vice President and Chief Financial Officer, effective October 20, 2025. This appointment follows the interim tenure of Michael Quartieri, who will continue as Chairman, CEO, and President. Mr. Barsetti brings extensive experience from his previous roles at Buyerlink Inc., AutoWeb, Inc., and Zovio Inc., among others. The appointment includes a comprehensive compensation package with salary, bonuses, and stock units, reflecting the company’s strategic focus on strengthening its financial leadership. The move is expected to enhance RideNow’s financial operations and align with its growth objectives, potentially impacting stakeholders positively.