RideNow Group (RDNW) AI Stock Analysis

• Market Cap: $123.67M
• Dividend Yield: N/A
• Average Volume (3M): 42.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.65
• Revenue Growth: -14.27%
• EPS Growth: 67.06%
• Country: US
• Employees: 1,928
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): -0.85
• Shares Outstanding: 38,002,422
• 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: 5.11
• Enterprise Value/Revenue: 0.57
• Enterprise Value/Gross Profit: 2.16
• Enterprise Value/Ebitda: 451.40
• 1Y Price Target: $3.50
• Price Target Upside: 7.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 46 Neutral
• Price Target: $3.50 ▲(7.69% Upside)

RideNow Group's overall stock score reflects significant financial challenges, with declining revenue and profitability, high leverage, and negative equity. Technical indicators are mixed, with potential bearish momentum but signs of a possible reversal. Valuation metrics are concerning, with a negative P/E ratio. The earnings call highlighted some operational improvements, but substantial revenue challenges remain.

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.

How the Company Makes Money

RumbleON 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 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 3.25
• 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 Negative. The current price of 3.25 is below the 20-day moving average (MA) of 4.06, below the 50-day MA of 3.77, and above the 200-day MA of 3.23, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 33.51 is Neutral, neither overbought nor oversold. The STOCH value of 14.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	50 Neutral	$205.88M	16.00	2.54%	―	0.79%	―
RDNW	46 Neutral	$123.67M	―	-246.90%	―	-14.27%	67.06%
SDA	46 Neutral	$211.44M	―	-167.38%	―	―	―
AZI	45 Neutral	$18.07M	0.50	―	―	32.90%	―
VRM	38 Underperform	$135.76M	―	-45.88%	―	-90.19%	79.52%

RideNow Group Corporate Events

RideNow Group Amends Warrants and Extends Expiration

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.