RideNow Group (RDNW) investor relations material

Executive summary

• Q3 2025 revenue was $281 million, down 4.7% year-over-year, mainly due to a sharp decline in vehicle transportation services revenue, while the Powersports segment returned to growth with higher unit sales and gross profit.

• Net loss for Q3 2025 improved to $4.1 million from $11.2 million in Q3 2024, with Adjusted EBITDA up 80.9% to $12.3 million.

• SG&A expenses reduced by 2.3% year-over-year, reflecting cost discipline, though legal and management transition costs impacted results.

• Powersports segment was the primary revenue driver, achieving its first post-COVID year-over-year growth in revenue, unit sales, and gross profit.

• Cost savings initiatives and operational turnaround efforts focused on cost structure, leadership, and store performance.

Financial highlights

• Gross profit for Q3 2025 was $76.0 million, up 2.3% year-over-year, driven by the Powersports segment.

• Adjusted EBITDA reached $12.3 million, up from $6.8 million in Q3 2024.

• SG&A expenses for Q3 2025 were $61.5 million, down $2.8 million year-over-year.

• Free cash flow for the nine months ended September 30 was $10.5 million, down from $67 million last year due to prior year asset sales and inventory reductions.

• Cash and restricted cash at quarter-end was $51.8 million, with $131.1 million available under inventory financing facilities.

Outlook and guidance

• Management expects continued adjusted EBITDA and free cash flow growth, with disciplined capital deployment and dealership footprint optimization.

• Positive momentum from Q2 continued into Q3 and Q4, with optimism for further improvement as sales cycles recover.

• Current liquidity is expected to be sufficient for at least the next twelve months, but additional financing may be required depending on business conditions.