RideNow Group, Inc. Reports First Quarter 2026 Financial Results
Rhea-AI Summary
RideNow Group (NASDAQ:RDNW) reported first quarter 2026 results with higher revenue, gross profit and unit volume.
Revenue was $260.4 million and gross profit $71.6 million. Net loss narrowed to $4.3 million from $9.7 million, while adjusted EBITDA rose to $9.3 million. Retail new powersports unit sales grew to 9,322 and pre-owned to 4,593. Same store powersports revenue reached $259.0 million. Operating cash outflow increased to $27.6 million, and free cash flow was -$28.2 million. Total available liquidity was $145.7 million, including $46.4 million of cash and $99.3 million in floorplan availability.
AI-generated analysis. Not financial advice.
Positive
- Revenue increased to $260.4 million from $244.7 million year over year
- Gross profit rose to $71.6 million from $67.2 million
- Operating income doubled to $7.6 million from $3.8 million
- Net loss improved to -$4.3 million from -$9.7 million
- Adjusted EBITDA grew to $9.3 million from $7.0 million
- Total retail powersports unit sales increased 12.9% to 13,915
- Total available liquidity stood at $145.7 million as of March 31, 2026
Negative
- Company remained unprofitable with a $4.3 million net loss in Q1 2026
- Operating cash outflow widened to $27.6 million from $6.9 million
- Free cash flow declined to -$28.2 million from -$7.4 million
- Non-vehicle net debt was $190.7 million, slightly higher than $189.3 million
- Powersports gross profit per retail unit fell 4.0% to $5,150
- Wholesale vehicle gross profit turned negative at -$0.2 million
News Market Reaction – RDNW
On the day this news was published, RDNW declined 0.25%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Peer moves were mixed: RMBL rose 38.96% while VRM and SDA declined, and scanner peers (JZXN, VRM, SDA) showed both up and down moves, indicating stock-specific rather than sector-driven dynamics for RDNW.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 09 | Earnings results | Positive | -7.3% | Q4 and 2025 results with higher EBITDA and narrower net loss. |
| Nov 04 | Earnings results | Positive | +23.9% | Q3 2025 powersports-led improvement and stronger EBITDA margins. |
Earnings have produced mixed reactions: one strong positive move and one notable selloff, despite operational improvements in both periods.
Recent earnings history for RideNow shows a transition-focused story. Q3 2025 results highlighted powersports-driven improvement with revenue of $281.0M and adjusted EBITDA of $12.3M, prompting a strong positive share reaction. Q4 and full-year 2025 results on Mar 9, 2026 showed revenue of $1,082.5M, improved adjusted EBITDA of $46.2M, and a narrower net loss of $52.4M, but the stock fell. Today’s Q1 2026 report continues the theme of revenue growth, better margins and narrowing losses.
Historical Comparison
Past earnings releases saw an average move of 8.32%, with one rally and one selloff. This Q1 2026 report again blends revenue growth with ongoing net losses and cash flow pressure.
Across Q3 and Q4 2025 and now Q1 2026, RideNow has emphasized powersports-driven revenue and EBITDA growth while gradually narrowing net losses. Full-year 2025 revenue was $1,082.5M with adjusted EBITDA of $46.2M, and Q4 powersports revenue was $256.1M. Q1 2026 powersports revenue of $260.4M, adjusted EBITDA of $9.3M, and an improved net loss of $4.3M extend this pattern of incremental operational progress.
Market Pulse Summary
This announcement highlights steady progress in RideNow’s powersports-focused strategy. Q1 2026 powersports revenue reached $260.4M with same-store growth of 13.1%, while adjusted EBITDA rose to $9.3M and net loss improved to $4.3M. At the same time, operating cash flow was negative $27.6M and non-vehicle net debt stood at $190.7M. Investors may watch future quarters for sustained revenue growth, margin trends, and cash generation relative to leverage.
Key Terms
adjusted EBITDA financial
free cash flow financial
non-vehicle net debt financial
same store sales financial
SG&A financial
restricted cash financial
floor plan lines of credit financial
AI-generated analysis. Not financial advice.
Growth in Same Store Revenue, Gross Profit and Unit Volume in the First Quarter
Key First Quarter 2026 Highlights (Compared to First Quarter 2025)
- Powersports Revenue increased
6.4% , reaching$260.4 million $15.7 million - On a same store sales basis, Powersports Revenue was up
13.1% , driven by a16.3% increase in unit sales. - Powersports Gross profit was
$71.6 million 8.3% . - Selling, general & administrative expense ("SG&A") was
$62.1 million 86.7% of total Company gross profit, compared to$61.1 million 90.9% of gross profit. - Net loss improved
55.7% to a loss of$4.3 million $9.7 million - Adjusted EBITDA increased to
$9.3 million $7.0 million
Commenting on the quarter, Chairman, Chief Executive Officer and President Michael Quartieri said, "I am invigorated by our team's unrelenting focus on execution, as evidenced by our first quarter results. Our tactical plan combines near-term initiatives to improve financial performance with structural changes to elevate the Company's strategic direction. All of our effort is focused on driving long-term value creation for our shareholders, and our first quarter results are further evidence that we are on the right trajectory."
First Quarter 2026 Results | |||||
Three Months Ended March 31, | |||||
($ in millions except units) | 2026 | 2025 | YOY Change | ||
Revenue | $ 260.4 | $ 244.7 | 6.4 % | ||
Gross Profit | $ 71.6 | $ 67.2 | 6.5 % | ||
SG&A | $ 62.1 | $ 61.1 | 1.6 % | ||
Adjusted SG&A(1) | $ 60.4 | $ 57.5 | 5.0 % | ||
Operating Income | $ 7.6 | $ 3.8 | NM | ||
Net Loss | $ (4.3) | $ (9.7) | 55.7 % | ||
Adjusted EBITDA(1) | $ 9.3 | $ 7.0 | 32.9 % | ||
Unit Retail Sales: | |||||
New Powersports | 9,322 | 8,013 | 16.3 % | ||
Pre-owned Powersports | 4,593 | 4,307 | 6.6 % | ||
Three Months Ended March 31, | |||||
($ in millions) | 2026 | 2025 | YOY Change | ||
Operating Cash Flow | $ (27.6) | $ (6.9) | 300.0 % | ||
Capital Expenditures | $ (0.6) | $ (0.5) | (20.0) % | ||
Free Cash Flow(1) | $ (28.2) | $ (7.4) | 281.1 % | ||
Mar. 31, | Dec. 31, | ||||
2026 | 2025 | Change | |||
Cash (unrestricted) | $ 30.2 | $ 29.5 | 2.4 % | ||
Long-term Debt, including Current Maturities | $ 211.3 | $ 207.6 | 1.8 % | ||
Principal of Long-Term Debt, including Current Maturities | $ 220.9 | $ 218.8 | 1.0 % | ||
Non-Vehicle Net Debt(1) | $ 190.7 | $ 189.3 | 0.7 % | ||
NM = not meaningful |
(1) Adjusted SG&A, Adjusted EBITDA, Free Cash Flow, and Non-Vehicle Net Debt are non-GAAP measures. Reconciliations of most directly comparable GAAP to non-GAAP financial measures are provided in accompanying financial schedules. |
First Quarter 2026 — Operating Results
Key Operating Metrics
Three Months Ended March 31, | |||||
$ in millions, except per unit | 2026 | 2025 | YOY Change | ||
Unit Sales (#) | |||||
Retail | |||||
New | 9,322 | 8,013 | 16.3 % | ||
Pre-owned | 4,593 | 4,307 | 6.6 % | ||
Total retail | 13,915 | 12,320 | 12.9 % | ||
Wholesale | 779 | 866 | (10.0) % | ||
Total Powersports Unit Sales | 14,694 | 13,186 | 11.4 % | ||
Revenue | |||||
New retail vehicles | $ 135.0 | $ 120.1 | 12.4 % | ||
Pre-owned retail vehicles | 52.0 | 48.1 | 8.1 % | ||
Wholesale vehicles | 4.9 | 3.8 | 28.9 % | ||
Finance & Insurance, net | 21.8 | 21.1 | 3.3 % | ||
Parts, Services, and Accessories | 46.7 | 46.1 | 1.3 % | ||
Total Powersports Revenue | $ 260.4 | $ 239.2 | 8.9 % | ||
Gross Profit | |||||
New retail vehicles | $ 19.2 | $ 16.3 | 17.8 % | ||
Pre-owned retail vehicles | 8.8 | 7.8 | 12.8 % | ||
Wholesale vehicles | (0.2) | 0.1 | (300.0) % | ||
Finance & Insurance, net | 21.8 | 21.1 | 3.3 % | ||
Parts, Services, and Accessories | 22.0 | 20.8 | 5.8 % | ||
Total Powersports Gross Profit | $ 71.6 | $ 66.1 | 8.3 % | ||
Powersports GPU(1) | $ 5,150 | $ 5,365 | (4.0) % | ||
(1) Calculated as total powersports gross profit divided by total retail units sold. |
Same Store Metrics(1) | Three Months Ended March 31, | ||||
$ in millions, except units and per unit | 2026 | 2025 | YOY Change | ||
Same Store Units (#) | |||||
Retail | |||||
New vehicles | 9,261 | 7,760 | 19.3 % | ||
Pre-owned vehicles | 4,593 | 4,118 | 11.5 % | ||
Total retail | 13,854 | 11,878 | 16.6 % | ||
Wholesale | 595 | 544 | 9.4 % | ||
Total Powersports Unit Sales | 14,449 | 12,422 | 16.3 % | ||
Same Store Revenue | |||||
New retail vehicles | $ 135.4 | $ 117.1 | 15.6 % | ||
Pre-owned retail vehicles | 52.0 | 46.1 | 12.8 % | ||
Total retail | 187.4 | 163.2 | 14.8 % | ||
Wholesale vehicles | 3.5 | 2.0 | 75.0 % | ||
Total Same Store Vehicles | 190.9 | 165.2 | 15.6 % | ||
Finance & Insurance, net | 21.4 | 19.1 | 12.0 % | ||
Parts, Services, and Accessories | 46.7 | 44.6 | 4.7 % | ||
Total Powersports Revenue | $ 259.0 | $ 228.9 | 13.1 % | ||
Same Store Gross Profit | |||||
New | $ 19.5 | $ 16.3 | 19.6 % | ||
Pre-owned | 8.7 | 7.7 | 13.0 % | ||
Total retail | 28.2 | 24.0 | 17.5 % | ||
Wholesale vehicles | (0.3) | (0.1) | 200.0 % | ||
Total Same Store Vehicles | 27.9 | 23.9 | 16.7 % | ||
Finance & Insurance, net | 21.4 | 19.1 | 12.0 % | ||
Parts, Services, and Accessories | 22.3 | 20.8 | 7.2 % | ||
Total Same Store Gross Profit | $ 71.6 | $ 63.8 | 12.2 % | ||
Same Store Powersports GPU(2) | $ 5,168 | $ 5,371 | (3.8) % | ||
(1) Same store metrics in the table above exclude the impact in all periods of fleet sales and stores permanently closed as of March 31, 2026. |
(2) Calculated as total same store powersports gross profit divided by total same store retail units. |
Balance Sheet, Liquidity and Cash Flow
The Company ended the quarter with
Investor Conference Call
The Company's management will host a conference call to discuss these results on May 14, 2026 at 4:30 p.m. Eastern Time. To access the conference call,
About the Company
RideNow Group, Inc. (NASDAQ: RDNW) is a powersports dealership group. We believe our powersports business is the largest powersports retail group in
Forward-Looking Statements
This press release contains "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act of 1995, which statements may be identified by words such as "expects," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning. Readers are cautioned not to place undue reliance on these forward-looking statements, which are based on our expectations as of the date of this press release and speak only as of the date of this press release. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Forward-looking statements contained in this press release include, but are not limited to, statements about our future results of operations and financial position, our ability to deliver continued growth and long-term shareholder value, business strategy and plans, including the anticipated benefits of our strategic initiatives, industry and business trends, the sufficiency of our liquidity and capital resources, our ability to refinance or repay our indebtedness on or prior to its maturity, including our ability to meet the refinancing milestones under our Credit Agreement, general macroeconomic and market conditions, growth opportunities, same store sales trends and momentum, and our objectives for future operations. Our actual future results and trends may differ materially depending on a variety of factors, including, but not limited to, the following: our ability to grow our business both organically and through strategic acquisitions and to realize our plans and strategies; our ability to acquire sufficient powersports inventory to satisfy consumer demand or our expectations for the business; our dependence on key personnel to operate our business and our ability to retain, attract, and integrate qualified personnel; internal control matters; our reliance on third-party financing providers to finance a substantial portion of our customers' powersports vehicle purchases and to supply extended protection products; the success of our marketing and branding efforts and our ability to attract new customers; adverse conditions affecting one or more of the powersports manufacturers with which we hold franchises, or their inability to deliver a desirable mix of vehicles; our dependence on manufacturer relationships and restrictions imposed by vehicle manufacturers; product liability claims and manufacturer safety recalls; natural disasters, adverse weather, and other disruptive events; our ability to adequately protect our intellectual property; and concentration of leases with entities controlled by our directors; our significant indebtedness and its effect on business flexibility; our need to refinance our indebtedness at or prior to its maturity, and our need for additional financing or capital for acquisitions or unforeseen circumstances; our dependence on floor plan facilities for inventory financing, which may be reduced or terminated; and interest rate risk in connection with floor plan payables and other debt instruments; sensitivity of the powersports industry to unfavorable economic conditions and other demand factors; changes in trade policies, including the imposition of tariffs; operating in a highly competitive market for powersports products and services; potential reduction or discontinuation of manufacturer sales incentive, warranty, or promotional programs; and seasonality and weather trends causing fluctuations in revenue and operating results; our reliance on Internet search engines to drive website traffic; potential disruption in service on our websites; cybersecurity risks and incidents affecting our operations and third-party providers; and compliance with privacy, security, and data processing laws and regulations regarding personal information; potential repeal or weakening of state laws protecting powersports retailers; compliance with a wide range of federal, state, and local laws and regulations; and exposure to various legal proceedings, as well as the factors listed under the heading "Forward-Looking Statements" and "Risk Factors" in the Company's SEC filings, as may be updated and amended from time to time. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Non-GAAP Measures
To supplement its Unaudited Condensed Consolidated Financial Statements, which are prepared and presented in accordance with accounting principles generally accepted in
RideNow Group, Inc. (amounts in millions, except per share data) | |||
Three Months Ended March 31, | |||
2026 | 2025 | ||
Revenue: | |||
Powersports vehicles | $ 191.9 | $ 172.0 | |
Parts, service and accessories | 46.7 | 46.1 | |
Finance and insurance, net | 21.8 | 21.1 | |
Vehicle transportation services | — | 5.5 | |
Total revenue | 260.4 | 244.7 | |
Cost of revenue: | |||
Powersports vehicles | 164.1 | 147.8 | |
Parts, service and accessories | 24.7 | 25.3 | |
Vehicle transportation services | — | 4.4 | |
Total cost of revenue | 188.8 | 177.5 | |
Gross profit | 71.6 | 67.2 | |
Selling, general and administrative | 62.1 | 61.1 | |
Depreciation and amortization | 1.9 | 2.3 | |
Operating income | 7.6 | 3.8 | |
Other income (expense): | |||
Floor plan interest expense | (2.4) | (2.8) | |
Other interest expense, net | (9.3) | (10.8) | |
Other (expense) income | (0.1) | 0.2 | |
Total other expense | (11.8) | (13.4) | |
Loss before income taxes | (4.2) | (9.6) | |
Income tax expense | 0.1 | 0.1 | |
Net loss | $ (4.3) | $ (9.7) | |
Weighted average shares-basic and diluted | 38.4 | 37.8 | |
Net loss per share - basic and diluted | $ (0.11) | $ (0.26) | |
Common shares outstanding, at period end | 38.7 | 37.8 | |
RideNow Group, Inc. (amounts in millions, except per share data) | |||
Mar. 31, 2026 | Dec. 31, 2025 | ||
ASSETS | (Unaudited) | ||
Current assets: | |||
Cash | $ 30.2 | $ 29.5 | |
Restricted cash | 16.2 | 13.4 | |
Accounts receivable, net | 31.2 | 28.9 | |
Inventory | 302.5 | 257.4 | |
Prepaid expense and other current assets | 4.7 | 5.5 | |
Total current assets | 384.8 | 334.7 | |
Property and equipment, net | 60.2 | 60.5 | |
Right-of-use assets | 148.7 | 150.4 | |
Franchise rights | 127.0 | 127.0 | |
Other assets | 1.0 | 1.0 | |
Total assets | $ 721.7 | $ 673.6 | |
LIABILITIES AND STOCKHOLDERS' DEFICIT | |||
Current liabilities: | |||
Accounts payable and other current liabilities | $ 82.3 | $ 77.7 | |
Vehicle floor plan notes payable | 263.0 | 218.4 | |
Current portion of long-term debt | 0.9 | 0.4 | |
Total current liabilities | 346.2 | 296.5 | |
Long-term liabilities: | |||
Long-term debt | 210.4 | 207.2 | |
Operating lease liabilities | 126.4 | 128.0 | |
Other long-term liabilities, including finance lease obligation | 54.9 | 54.4 | |
Total long-term liabilities | 391.7 | 389.6 | |
Total liabilities | 737.9 | 686.1 | |
Commitments and contingencies | |||
Stockholders' Deficit: | |||
Additional paid-in capital | 704.7 | 704.1 | |
Accumulated deficit | (716.6) | (712.3) | |
Treasury stock | (4.3) | (4.3) | |
Total stockholders' deficit | (16.2) | (12.5) | |
Total liabilities and stockholders' deficit | $ 721.7 | $ 673.6 | |
RideNow Group, Inc. (amounts in millions) | |||
Three Months Ended March 31, | |||
2026 | 2025 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net loss | $ (4.3) | $ (9.7) | |
Adjustments to reconcile net loss to net cash from operating activities: | |||
Depreciation and amortization | 1.9 | 2.3 | |
Amortization of debt discount and issuance costs | 1.6 | 2.5 | |
Stock-based compensation | 0.6 | (0.1) | |
Interest paid-in-kind capitalized in debt principal | 1.2 | 0.8 | |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | (2.3) | 3.7 | |
Inventory | (45.1) | (32.0) | |
Prepaid expenses and other assets | 0.8 | 0.9 | |
Other liabilities | 0.7 | 0.3 | |
Accounts payable and accrued liabilities | 4.6 | (0.1) | |
Floor plan trade note borrowings, net | 12.7 | 24.5 | |
Net cash used in operating activities | (27.6) | (6.9) | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchase of property and equipment | (0.6) | (0.5) | |
Technology development | (0.1) | — | |
Net cash used in investing activities | (0.7) | (0.5) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Repayment of debt | (0.1) | (38.8) | |
Increase in borrowings from non-trade floor plans | 31.9 | 6.5 | |
Other financing | — | (0.8) | |
Net cash provided by (used in) financing activities | 31.8 | (33.1) | |
NET CHANGE IN CASH | 3.5 | (40.5) | |
Cash and restricted cash at beginning of period | 42.9 | 96.7 | |
Cash and restricted cash at end of period | $ 46.4 | $ 56.2 | |
RideNow Group, Inc.
Non-GAAP Measures
(Unaudited)
(amounts in millions)
EBITDA and Adjusted EBITDA
We define EBITDA as net loss adjusted to add back interest expense, the impact of income taxes, depreciation and amortization. Adjusted EBITDA further adds back non-cash stock-based compensation, management transition costs, certain litigation expenses not associated with ongoing operations, and certain other costs and credits, as these recoveries, charges and expenses are not considered a part of our core business operations and are not necessarily an indicator of ongoing, future company performance. Adjusted EBITDA is reduced by floor plan interest expense. Our industry typically treats interest expense on vehicle floor plan debt as operating expense, as vehicle floor plan debt is integral to our operations and is collateralized by our powersports vehicles.
Adjusted EBITDA is one of the primary metrics we use to evaluate the financial performance of our business. We present Adjusted EBITDA because we believe it is helpful in highlighting trends in our operating results and it is frequently used by analysts, investors and other interested parties to evaluate companies in our industry.
A reconciliation of net loss to EBITDA and Adjusted EBITDA is provided below:
Three Months Ended March 31, | |||
2026 | 2025 | ||
Net loss (GAAP) | $ (4.3) | $ (9.7) | |
Add back: | |||
Floor plan interest expense | 2.4 | 2.8 | |
Other interest expense | 9.3 | 10.8 | |
Depreciation and amortization | 1.9 | 2.3 | |
Income tax expense (benefit) | 0.1 | 0.1 | |
EBITDA (non-GAAP) | 9.4 | 6.3 | |
Adjustments: | |||
Floor plan interest expense | (2.4) | (2.8) | |
Stock-based compensation | 0.6 | (0.1) | |
Lease expense associated with favorable related party leases in excess of | 0.2 | 0.3 | |
Other costs(1) | 1.5 | 2.2 | |
Management transition costs | — | 1.1 | |
Adjusted EBITDA (non-GAAP) | $ 9.3 | $ 7.0 | |
(1) | Other costs, such as costs incurred for litigation not part of our normal, ongoing operations. | |||||||||||
RideNow Group, Inc.
Non-GAAP Measures
(Unaudited)
(amounts in millions)
Free Cash Flow
We define Free Cash Flow as cash flows from operating activities less capital expenditures of property and equipment (not including acquisitions). We utilize Free Cash Flow when assessing the Company's sources of liquidity and capital resources. We believe that Free Cash Flow is helpful in understanding the Company's capital requirements and provides an additional means to reflect the cash flow trends in the Company's business. We believe Free Cash Flow is useful to investors because it represents the cash that our operating businesses generate, before taking into account non-operational cash movements. Free Cash Flow has certain limitations in that it does not represent the total increase or decrease in the cash balance for the period, nor does it represent the residual cash flow for discretionary expenditures. Therefore, we think it is important to evaluate Free Cash Flow along with our consolidated statement of cash flows.
A reconciliation of cash flows from operating activities to Free Cash Flow is provided below:
Three Months Ended March 31, | |||
2026 | 2025 | ||
Cash flows from operating activities (GAAP) | $ (27.6) | $ (6.9) | |
Less: | |||
Capital expenditures | (0.6) | (0.5) | |
Free Cash Flow (non-GAAP) | $ (28.2) | $ (7.4) | |
Non-Vehicle Net Debt
We define Non-Vehicle Net Debt as total principal of long-term debt, including current maturities, less unrestricted cash. Our restricted cash is principally related to vehicle floor plan debt and is therefore not part of this calculation. Vehicle floor plan debt and finance lease obligations are not included in this measure. We believe that Non-Vehicle Net Debt is useful to investors and analysts as a measure of our financial position. We use Non-Vehicle Net Debt to monitor and compare our financial position from period to period.
A reconciliation of total long-term debt, including current maturities to Non-Vehicle Net Debt is provided below:
As of Mar. 31, 2026 | As of Dec. 31, 2025 | ||
Long-term debt, including current maturities (GAAP) | $ 211.3 | $ 207.6 | |
Add back: unamortized debt discount and issuance costs | 9.6 | 11.2 | |
Principal of long-term debt, including current maturities | 220.9 | 218.8 | |
Less: unrestricted cash | (30.2) | (29.5) | |
Non-Vehicle Net Debt (non-GAAP) | $ 190.7 | $ 189.3 | |
RideNow Group, Inc.
Non-GAAP Measures
(Unaudited)
(amounts in millions)
Adjusted SG&A
We define Adjusted SG&A as SG&A adjusted to deduct transaction costs, certain litigation expenses not associated with our ongoing operations, management transition costs and certain other costs, as these charges and expenses are not considered a part of our core business operations and are not necessarily an indicator of the ongoing run rate of our SG&A. We use Adjusted SG&A to measure our progress toward achieving our goals. Adjusted SG&A is a non-GAAP financial measure and should not be used as a replacement for SG&A reported in compliance with GAAP. Adjusted SG&A has certain limitations in that it does not represent the total SG&A for the period. Therefore, we believe it is important to evaluate Adjusted SG&A along with SG&A and our consolidated statements of operations.
A reconciliation of SG&A to Adjusted SG&A is below:
Three Months Ended March 31, | |||
2026 | 2025 | ||
SG&A (GAAP) | $ 62.1 | $ 61.1 | |
% of Gross Profit | 86.7 % | 90.9 % | |
Adjustments: | |||
Lease expense associated with favorable related party leases in excess of | (0.2) | (0.3) | |
Other costs(1) | (1.5) | (2.2) | |
Management transition costs(2) | — | (1.1) | |
Adjusted SG&A (non-GAAP) | $ 60.4 | $ 57.5 | |
% of Gross Profit(3) | 84.3 % | 85.6 % | |
(1) Other costs, such as costs incurred for litigation not part of our normal, ongoing operations. |
(2) Severance and other charges associated with the separation of former executives. |
(3) Ratio of Adjusted SG&A to Gross Profit. |
RideNow Group, Inc.
Supplementary Data
(Unaudited)
Key Term Loan Credit Agreement Covenant Compliance Calculations as of March 31, 2026(1)
Consolidated Total Net Leverage Ratio | 3.5x | |
Covenant | Maximum Allowed | 6.5x |
Consolidated Senior Secured Net Leverage Ratio | 3.3x | |
Covenant | Maximum Allowed | 6.25x |
(1) Calculated in accordance with our credit agreement. |
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SOURCE RideNow Group Inc.