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RumbleON (RMBL)
NASDAQ:RMBL

RumbleON (RMBL) AI Stock Analysis

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RumbleON

(NASDAQ:RMBL)

Rating:52Neutral
Price Target:
$2.50
▲(0.00%Upside)
RumbleON's overall stock score reflects significant financial and operational challenges. The company's high leverage and declining revenue are major concerns. While technical indicators show some bullish signs, the valuation remains unattractive due to negative earnings. Earnings call insights suggest some positive strategic adjustments, but leadership changes add uncertainty.
Positive Factors
Cost Containment
Management's cost containment efforts are expected to drive a meaningful portion of the projected AEBITDA increase for 2025.
Equity Offering
Estimated $9M in net proceeds from the equity rights offering will help the company address the $39M in convertible senior notes maturing.
Market Position
RumbleOn is the only omni-channel platform in the powersports market.
Negative Factors
Interest Rates Impact
The power sports business likely will remain under pressure as interest rates remain sticky.
Leadership Instability
RumbleOn has had four CEOs in the past year and a half, indicating instability in leadership.
Sales and Profit Trends
The CEO change suggests that sales and profit trends remain weak.

RumbleON (RMBL) vs. SPDR S&P 500 ETF (SPY)

RumbleON 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 through several key streams. Primarily, the company makes money by facilitating vehicle transactions, where it acts as a middleman by buying vehicles from sellers and selling them to buyers at a markup. In addition to direct sales, RumbleON offers a trade-in service, allowing users to trade their vehicles, which provides an opportunity for additional revenue through the resale of traded-in vehicles. The company also partners with various financial institutions to offer financing options to buyers, earning commissions on these financial products. These partnerships and the scalability of its digital platform are significant contributors to its earnings.

RumbleON Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: -5.30%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted a challenging quarter with significant revenue declines and underperformance in key segments like Wholesale Express. However, the company maintained positive adjusted EBITDA and saw robust demand in the pre-owned segment with improved gross margins, indicating strategic adjustments are yielding some positive results amidst a tough economic environment.
Q1-2025 Updates
Positive Updates
Robust Demand for Pre-owned Segment
Despite overall sales declines, the pre-owned segment showed robust demand with strong margins as consumers shifted to pre-owned products amidst tariffs and a tough purchasing environment for higher-priced new items.
Improved Gross Margin Percentages
New unit gross margins improved to 13.5% for the quarter, compared to 12.5% for the same quarter last year, indicating better pricing or cost control strategies.
Positive Adjusted EBITDA Despite Challenges
The company achieved $244.7 million in revenue and $7 million in adjusted EBITDA, maintaining profitability despite a 20.5% decline in revenue.
Negative Updates
Significant Revenue Decline
RumbleOn experienced a 20.5% year-over-year decline in units sold for the quarter, contributing to an 18.5% decrease in revenue compared to the same quarter last year.
Wholesale Express Segment Underperformance
Wholesale Express revenue was down 61.5% as compared to the same quarter in the prior year, with a 68.6% decrease in gross profit, primarily due to broker departures.
Challenges from Tariffs and Economic Environment
The evolving landscape around tariffs has created volatility and uncertainty in the market, impacting consumer preferences and sales performance.
Company Guidance
During the RumbleOn, Inc.'s first quarter 2025 earnings call, CEO Michael Quartieri discussed the company's financial performance and strategic initiatives amidst a challenging market environment. The company reported a revenue of $244.7 million and adjusted EBITDA of $7 million, despite a 20.5% year-over-year decline in units sold. The Powersports Group sold 13,186 units, with new unit sales down 23.7% and pre-owned unit sales down 13.9%. Gross margins improved, with new units at 13.5% compared to 12.5% the previous year, while pre-owned margins were at 16.3%. The company's asset-light vehicle transportation service, Wholesale Express, saw a significant revenue decline of 61.5% year-over-year. RumbleOn ended the quarter with $56.2 million in cash and a non-vehicle net debt of $188.2 million, with total available liquidity of $171.4 million. The company is focused on operational discipline, capital allocation, and strengthening its leadership team, including engaging an investment banker for refinancing efforts. Despite challenges, Quartieri expressed confidence in the strategic actions taken to position RumbleOn for long-term success.

RumbleON Financial Statement Overview

Summary
RumbleON's financial performance shows significant challenges, with a declining revenue trend and persistent net losses. The company is highly leveraged, indicated by a high debt-to-equity ratio, reflecting financial instability. Some improvement in cash flow is noted, but overall, the financial health remains weak.
Income Statement
45
Neutral
RumbleON's income statement reveals significant challenges. The gross profit margin stands at 26.08% for TTM, reflecting decent profitability on a gross level. However, the company has been facing persistent net losses, with a TTM net profit margin of -6.81%, indicating operational inefficiencies. Revenue has decreased from $1.8 billion in 2022 to $1.1 billion TTM, showing a concerning trend of declining revenue. Additionally, EBIT and EBITDA margins are negative, highlighting ongoing struggles to achieve operational profitability.
Balance Sheet
40
Negative
The balance sheet indicates financial instability. The debt-to-equity ratio is high at 21.76 TTM, reflecting significant leverage and potential liquidity risks. With an equity ratio of 3.64%, the company is heavily reliant on debt financing. Return on equity is negative, given the net losses, indicating poor returns for shareholders. The shrinking stockholders' equity is also a red flag for financial health.
Cash Flow
55
Neutral
Cash flow analysis presents a mixed picture. The free cash flow has seen growth, indicating some improvement in cash management. The operating cash flow to net income ratio is positive at -1.01, showing that the company is generating cash flow despite losses. However, the high free cash flow to net income ratio is primarily due to high net losses, pointing to structural cash flow issues that need addressing.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.15B1.21B1.37B1.79B934.73M416.43M
Gross Profit298.90M314.30M359.90M452.66M158.18M31.63M
EBITDA-18.60M1.10M-55.90M-230.40M-8.88M-16.22M
Net Income-78.00M-78.60M-215.50M-261.51M-9.72M-31.64M
Balance Sheet
Total Assets738.90M755.20M926.30M1.03B1.05B76.98M
Cash, Cash Equivalents and Short-Term Investments41.10M85.30M58.90M48.58M48.97M1.47M
Total Debt585.40M615.10M771.60M730.15M522.39M58.20M
Total Liabilities712.00M767.20M820.70M821.20M614.03M72.41M
Stockholders Equity26.90M36.70M105.60M206.01M431.29M4.57M
Cash Flow
Free Cash Flow77.40M97.00M-54.70M-31.51M-45.58M14.82M
Operating Cash Flow78.80M99.40M-35.50M-18.89M-35.99M17.14M
Investing Cash Flow1.50M-2.00M-19.10M-82.20M-376.56M-2.28M
Financing Cash Flow-100.20M-80.60M99.50M107.70M461.00M-18.07M

RumbleON Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2.50
Price Trends
50DMA
2.18
Positive
100DMA
2.81
Negative
200DMA
4.00
Negative
Market Momentum
MACD
0.07
Negative
RSI
60.76
Neutral
STOCH
80.96
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RMBL, the sentiment is Neutral. The current price of 2.5 is above the 20-day moving average (MA) of 2.12, above the 50-day MA of 2.18, and below the 200-day MA of 4.00, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 60.76 is Neutral, neither overbought nor oversold. The STOCH value of 80.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RMBL.

RumbleON Risk Analysis

RumbleON disclosed 35 risk factors in its most recent earnings report. RumbleON 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

RumbleON Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$16.85B11.50-7.38%2.96%1.59%-23.36%
52
Neutral
$94.65M-130.43%-14.45%78.09%
47
Neutral
$26.79M-154.00%-26.46%26.16%
VRVRM
44
Neutral
$148.24M-49.90%-96.51%77.24%
38
Underperform
$10.44M-86.66%-447.71%
$467.52M
$11.34M-71.66%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RMBL
RumbleON
2.50
-1.18
-32.07%
KXIN
Kaixin Auto Holdings
0.95
-7.15
-88.27%
GORV
Lazydays Holdings
0.24
-2.34
-90.70%
NWTN
NWTN
1.60
0.28
21.21%
JZXN
Jiuzi Holdings
1.03
-2.12
-67.30%
VRM
Vroom, Inc.
28.71
4.07
16.52%

RumbleON Corporate Events

Executive/Board ChangesShareholder Meetings
RumbleON Shareholders Approve Stock Plan Amendment
Neutral
Jun 6, 2025

On June 4, 2025, RumbleOn, Inc. held its annual meeting of shareholders virtually, where several key decisions were made. Shareholders approved an amendment to the 2017 Stock Incentive Plan, increasing the authorized shares of Class B common stock by 2.5 million and introducing an evergreen provision. Additionally, all board nominees were elected, executive compensation was approved on an advisory basis, and BDO USA, P.C. was ratified as the independent auditor for 2025.

The most recent analyst rating on (RMBL) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on RumbleON stock, see the RMBL Stock Forecast page.

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.Date of analysis: Jul 01, 2025