RideNow Group (RDNW) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue declined 11% year-over-year to $299.9 million, with adjusted EBITDA of $17.2 million, up 6.2% year-over-year, despite a net loss of $32.2 million driven by a $34 million franchise rights impairment.

• Powersports remained the primary revenue driver, but both new and pre-owned retail vehicle sales volumes fell, partially offset by higher per-vehicle gross profit.

• Company rebranded to RideNow Group, Inc., relocated headquarters to Arizona, and changed ticker symbol to RDNW effective August 13, 2025.

• Extended term loan maturity by 13 months to September 30, 2027, with a 0.5% interest rate reduction and $20 million principal paydown, including $10 million from a subordinated note to related parties.

• Cost discipline and operational improvements were implemented, but legal and management transition costs increased non-recurring charges.

Financial highlights

• Q2 2025 gross profit was $83.9 million (down 6.7% year-over-year), with adjusted SG&A expenses of $64.9 million (77.4% of gross profit), and operating loss of $18.8 million.

• Net loss for Q2 2025 was $32.2 million, compared to a $0.7 million loss in Q2 2024, with a six-month net loss of $41.9 million.

• Cash and restricted cash at June 30, 2025, totaled $59.8 million; non-vehicle net debt was $185.1 million.

• Free cash flow for the first half was $1.1 million, down from $28.2 million year-over-year; operating cash flow was $4 million.

• Total available liquidity was $185.7 million as of June 30, 2025.

Outlook and guidance

• Management expects vehicle transportation services volume to remain substantially lower for the remainder of 2025 due to ongoing broker hiring.

• Confident in higher adjusted EBITDA and increased free cash flow going forward, with ongoing cost savings initiatives focused on professional fees and facilities costs.

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

• Monitoring the impact of the Big Beautiful Bill and macroeconomic factors on consumer confidence and demand.

• Management expressed confidence in ongoing operational improvements to drive future growth and shareholder value.