RideNow Group (RDNW) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $260.4 million, up 6.4% year-over-year, driven by higher new and pre-owned vehicle sales and the company’s focus on powersports dealerships after winding down transportation services.

• Gross profit increased to $71.6 million, with improvements across retail vehicles, parts, service, accessories, and finance & insurance.

• Adjusted EBITDA rose 32.9% to $9.3 million, marking the fourth consecutive quarter of year-over-year improvement.

• Net loss narrowed to $4.3 million from $9.7 million, reflecting improved operational execution and cost control.

• Management is focused on operational execution, cost reduction, and long-term value creation through disciplined store performance and strategic initiatives.

Financial highlights

• Total revenue for Q1 2026 was $260.4 million, compared to $244.7 million in Q1 2025.

• Gross profit improved by $5.5 million to $71.6 million.

• Adjusted EBITDA increased to $9.3 million from $7 million in the prior year.

• SG&A expense was $62.1 million (86.7% of gross profit), down from 90.9% last year; adjusted SG&A was $60.4 million, or 84.3% of gross profit.

• Net loss for the quarter was $4.3 million, an improvement from $9.7 million in Q1 2025.

Outlook and guidance

• Management expects continued improvement in adjusted EBITDA and free cash flow throughout 2026, but notes macroeconomic uncertainty and potential for margin compression if tariffs or interest rates rise.

• Inventory management and cost controls remain a focus to support profitability amid volatile demand.

• The company is positioned for growth through accretive acquisitions and strategic direction.

• Liquidity is expected to be sufficient for at least the next twelve months, but refinancing of long-term debt is required by late 2026.

• Leadership remains optimistic about consumer demand despite temporary inflation and higher gas prices.