RideNow Group, Inc. Reports Third Quarter 2026 Financial Results

Debt maturities extend to 2031, while nine-month operating cash flow turned negative and another credit facility remains under discussion.

Rhea-AI Summary

RideNow Group (NASDAQ: RDNW) reported third-quarter 2026 revenue of $244.3 million, down year over year as retail vehicle sales declined. Net loss widened to $13.9 million from $4.1 million, while gross profit fell 13.8% to $65.5 million. Selling, general and administrative expenses decreased to $59.6 million from $64.4 million. Adjusted EBITDA, a non-GAAP earnings measure, fell to $5.3 million from $12.3 million.

RideNow refinanced its senior secured term loan with a $220.0 million loan maturing in September 2031 and completed a Tallahassee dealership acquisition. Discussions for a $50.0 million secured revolving credit facility remained advanced. Nine-month operating cash outflow was $41.7 million, versus a $15.5 million inflow a year earlier. The company expects fourth-quarter adjusted EBITDA to exceed the third quarter and an incremental $10 million in annual run-rate cost savings as it exits 2027.

16 points · 1 major

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0 major · 22 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointTerm-loan refinancing secured $220.0 million with maturity in September 2031. 1× market cap
• Moderate pointThird-quarter selling, general and administrative expenses fell 7.5% to $59.6 million year over year.
• Moderate point. Forward-looking: it has not happened yet and may not happen.RideNow expects fourth-quarter adjusted EBITDA to exceed third-quarter adjusted EBITDA.
• Moderate point. Forward-looking: it has not happened yet and may not happen.RideNow expects an incremental $10 million in annual run-rate cost savings as it exits 2027.
• Moderate pointNine-month operating income reached $29.7 million, versus a $5.6 million loss a year earlier.
• Moderate pointNine-month net loss narrowed to $11.7 million from $46.0 million a year earlier.
• Moderate pointNine-month adjusted free cash flow, a non-GAAP measure, increased to $14.2 million from $5.2 million.

9 minor points

• Minor pointThird-quarter other interest expense, net, decreased to $9.0 million from $10.4 million.
• Minor pointQuarterly cost reductions amounted to $4.6 million on an annualized basis.
• Minor pointTallahassee dealership acquisition was completed during the quarter.
• Minor pointThird-quarter powersports gross profit per retail unit rose 3.7% to $5,376.8 year over year.
• Minor pointThird-quarter same-store gross profit per retail unit increased 2.5% to $5,401.4 year over year.
• Minor pointNine-month capital expenditures decreased to $2.5 million from $5.0 million a year earlier.
• Minor pointNine-month same-store powersports revenue rose 2.3% to $791.9 million year over year.
• Minor pointNine-month same-store gross profit rose 1.5% to $220.4 million year over year.
• Minor pointNine-month same-store powersports unit sales increased 1.0% to 43,385 year over year.

Negative

• Moderate pointThird-quarter revenue declined 13.1% to $244.3 million year over year.
• Moderate pointThird-quarter net loss widened to $13.9 million from $4.1 million a year earlier.
• Moderate pointThird-quarter gross profit declined 13.8% to $65.5 million year over year.
• Moderate pointThird-quarter operating income fell 55.3% to $4.2 million year over year.
• Moderate pointThird-quarter adjusted EBITDA declined 56.9% to $5.3 million year over year.
• Moderate pointNine-month operating cash flow turned to a $41.7 million outflow from a $15.5 million inflow.
• Moderate pointLong-term debt, including current maturities, rose to $219.0 million from $207.6 million at December 31, 2025.
• Moderate pointProposed $50.0 million secured revolving credit facility remained in advanced discussions, rather than completed. 23% of market cap
• Moderate pointThird-quarter new retail vehicle sales declined 17.9% to 8,127 units year over year.
• Moderate pointThird-quarter pre-owned retail vehicle sales declined 13.7% to 4,055 units year over year.

12 minor points

• Minor pointThird-quarter basic and diluted loss per share widened to $0.36 from $0.11 a year earlier.
• Minor pointNon-vehicle net debt increased to $203.7 million from $189.3 million at December 31, 2025.
• Minor pointUnrestricted cash decreased to $29.2 million from $29.5 million at December 31, 2025.
• Minor pointDebt extinguishment generated a $5.7 million loss in the third quarter.
• Minor pointThird-quarter wholesale vehicle sales declined 47.6% to 704 units year over year.
• Minor pointThird-quarter same-store powersports revenue fell 7.9% to $241.4 million year over year.
• Minor pointThird-quarter same-store gross profit fell 8.6% to $65.8 million year over year.
• Minor pointThird-quarter floor plan interest expense increased to $3.2 million from $3.1 million a year earlier.
• Minor pointNine-month consolidated revenue decreased to $801.5 million from $825.6 million a year earlier.
• Minor pointNine-month consolidated gross profit decreased to $221.9 million from $227.1 million a year earlier.
• Minor pointNine-month powersports unit sales declined 4.4% to 44,216 year over year.
• Minor pointNine-month same-store gross profit per retail unit declined 1.1% to $5,279.2 year over year.

News Explained

As of September 30, 2026, RideNow reported $149.4 million in available liquidity: $47.6 million in cash, including restricted cash, and about $101.8 million of floorplan credit availability, so the total includes borrowing capacity, not just cash.

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Key Figures

Revenue: $244.3 million; down 13.1% Same-store powersports revenue: Down 7.9% Gross profit: $65.5 million; down 13.8% +5 more

Revenue

$244.3 million; down 13.1%

3Q26 compared with 3Q25

Same-store powersports revenue

Down 7.9%

3Q26 year over year

Gross profit

$65.5 million; down 13.8%

3Q26 compared with 3Q25

Net loss

$13.9 million versus $4.1 million

3Q26 versus 3Q25

Adjusted EBITDA

$5.3 million versus $12.3 million

3Q26 versus 3Q25

Refinanced term loan

$220.0 million

New loan matures in September 2031

Proposed ABL facility

$50.0 million

Company reported advanced discussions; facility not stated as completed

Operating cash flow

$(41.7) million versus $15.5 million inflow

Nine months ended September 30, 2026, versus the same period in 2025

Previous Earnings Reports

1 past event · Latest: Aug 11

Same Type 1 event

1. Aug 11

   Q2 earnings

   24h Move

   -2.3%

   Revenue reached $296.8 million; same-store powersports revenue rose 3.0% and adjusted EBITDA increased 19.2%.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

senior secured term loan, asset-based revolving credit facility, adjusted ebitda, non-gaap

4 terms

senior secured term loan financial

"refinanced our senior secured term loan facility with a new $220.0 million term loan"

A senior secured term loan is a type of borrowing where a company borrows money and promises to pay it back over a fixed period, with the loan secured by the company's assets as collateral. Because it is "senior," it has priority over other debts if the company faces financial trouble, and being "secured" means lenders have a claim on specific assets. For investors, this makes the loan a safer and more predictable investment compared to unsecured or subordinate debts.

asset-based revolving credit facility financial

"a new $50.0 million senior secured asset-based revolving credit facility"

A loan arrangement where a lender agrees to make funds available up to a set limit that a borrower can draw, repay, and draw again, with the amount available tied to the value of specific assets (like inventory, receivables, or equipment) pledged as collateral. It matters to investors because it provides flexible working capital while limiting risk exposure: the company can fund growth or cover shortfalls quickly, but borrowing capacity can shrink if asset values fall.

adjusted ebitda financial

"Adjusted EBITDA decreased to $5.3 million from $12.3 million"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-gaap financial

"are non-GAAP measures"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

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CHANDLER, Ariz., Nov. 10, 2026 /PRNewswire/ -- RideNow Group, Inc. (NASDAQ: RDNW), ("we", "our", the "Company", or "RideNow"), today announced financial results for the third quarter ended September 30, 2026.

Key Third Quarter 2026 Highlights (Compared to Third Quarter 2025)

• Total revenue was $244.3 million, a decrease of 13.1%, primarily from lower unit volume coupled with our store consolidation efforts.
• On a same store sales basis, Powersports Revenue was down 7.9%, due to a decrease in unit sales, largely driven by a reduction in overall consumer discretionary spending and the initial market implementation of the Company's new Clear Price transparent pricing model, proactively introduced to align with recent Federal Trade Commission ("FTC") guidance and enforcement priorities regarding vehicle pricing and fee transparency.
• Successfully refinanced our senior secured term loan facility with a new $220.0 million term loan maturing in September 2031, and entered into advanced discussions for a new $50.0 million senior secured asset-based revolving credit facility (ABL Facility) to enhance overall available liquidity.
• Total gross profit was $65.5 million, down 13.8%.
• Selling, general & administrative expenses ("SG&A") were down $4.8 million to $59.6 million, from $64.4 million in the prior year.
• Net loss increased to $13.9 million as compared to a net loss of $4.1 million in the prior year.
• Adjusted EBITDA decreased to $5.3 million from $12.3 million.

Commenting on the quarter, Chairman, Chief Executive Officer and President Michael Quartieri said, "The contraction we saw in the third quarter was primarily driven by our proactive, company-wide rollout of the 'RideNow Clear Price' strategy, designed to fully comply with FTC pricing guidelines. While the August rollout impacted our retail volume against non-compliant competitors during the quarter, we believe it is the right move to build long-term customer trust and position us as the dealership group of choice. In fact, we are already seeing a rebound in the fourth quarter as consumer awareness grows, and we expect Q4 Adjusted EBITDA to outpace Q3, bucking our typical seasonal trend. We reduced costs by $4.6 million on an annualized basis during the quarter, and we continue to make great progress on our operational transformation and expect to yield an incremental $10 million of run-rate cost savings as we exit 2027. During the quarter, we refinanced our term debt, extending our maturities to 2031 and completed an accretive tuck-in acquisition of a dealership in Tallahassee, Florida.  Ultimately, the structural changes and cost reductions we are implementing, coupled with accretive acquisitions, set us up very well to capture substantial operating leverage when the broader powersports cycle rebounds."

Third Quarter 2026 Results
	Three Months Ended September 30,
($ in millions)	2026		2025		YOY Change
Revenue	$          244.3		$          281.0		(13.1) %
Gross Profit	$            65.5		$            76.0		(13.8) %
SG&A	$            59.6		$            64.4		(7.5) %
Adjusted SG&A(1)	$            57.7		$            61.5		(6.2) %
Operating Income	$              4.2		$              9.4		(55.3) %
Net Loss	$           (13.9)		$             (4.1)		239.0 %
Adjusted EBITDA(1)	$              5.3		$            12.3		(56.9) %
Unit Retail Sales:
New Powersports	8,127		9,904		(17.9) %
Pre-owned Powersports	4,055		4,701		(13.7) %
	Nine Months Ended September 30,
($ in millions)	2026		2025		YOY Change
Operating Cash Flow	$           (41.7)		$            15.5		(369.0) %
Capital Expenditures	$             (2.5)		$             (5.0)		(50.0) %
Adjusted Free Cash Flow(1)	$            14.2		$              5.2		173.1 %
	September 30,		December 31,
	2026		2025		Change
Cash (unrestricted)	$             29.2		$             29.5		(1.0) %
Long-term Debt, including Current Maturities	$           219.0		$           207.6		5.5 %
Principal of Long-Term Debt, including Current Maturities	$           232.9		$           218.8		6.4 %
Non-Vehicle Net Debt(1)	$           203.7		$           189.3		7.6 %

NM = not meaningful.
(1)	Adjusted SG&A, Adjusted EBITDA, Adjusted 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.

Third Quarter 2026 — Operating Results

Key Operating Metrics

	Three Months Ended September 30,						Nine Months Ended September 30,
$ in millions, except per unit	2026		2025		YOY Change		2026		2025		YOY Change
Vehicle Unit Sales (#)
Retail
New	8,127		9,904		(17.9) %		28,266		28,535		(0.9) %
Pre-owned	4,055		4,701		(13.7) %		13,572		14,291		(5.0) %
Total retail	12,182		14,605		(16.6) %		41,838		42,826		(2.3) %
Wholesale	704		1,344		(47.6) %		2,378		3,426		(30.6) %
Total Powersports Unit Sales	12,886		15,949		(19.2) %		44,216		46,252		(4.4) %
Revenue
New retail vehicles	$     125.6		$     147.1		(14.6) %		$     417.2		$     422.0		(1.1) %
Pre-owned retail vehicles	45.5		53.5		(15.0) %		154.6		160.8		(3.9) %
Wholesale vehicles	4.4		3.7		18.9 %		15.3		12.5		22.4 %
Finance & Insurance, net	21.7		24.9		(12.9) %		70.5		73.2		(3.7) %
Parts, Service, and Accessories	47.1		50.8		(7.3) %		143.9		149.3		(3.6) %
Total Powersports Revenue	$     244.3		$     280.0		(12.8) %		$     801.5		$     817.8		(2.0) %
Gross Profit
New retail vehicles	$       16.3		$       18.5		(11.9) %		$       58.6		$       55.3		6.0 %
Pre-owned retail vehicles	5.7		8.6		(33.7) %		24.8		27.5		(9.8) %
Wholesale vehicles	(0.5)		(0.2)		150.0 %		(0.5)		(0.1)		400.0 %
Finance & Insurance, net	21.7		24.9		(12.9) %		70.5		73.2		(3.7) %
Parts, Service, and Accessories	22.3		23.9		(6.7) %		68.5		69.6		(1.6) %
Total Powersports Gross Profit	$        65.5		$        75.7		(13.5) %		$      221.9		$      225.5		(1.6) %
Powersports GPU(1)	$   5,376.8		$   5,183.2		3.7 %		$   5,303.8		$   5,265.5		0.7 %
(1) Calculated as total powersports gross profit divided by total retail units sold.

 

Same Store Metrics(1)	Three Months Ended September 30,						Nine Months Ended September 30,
$ in millions, except units and per unit	2026		2025		YOY Change		2026		2025		YOY Change
Same Store Units (#)
Retail
New vehicles	8,127		9,164		(11.3) %		28,177		27,044		4.2 %
Pre-owned vehicles	4,055		4,504		(10.0) %		13,572		13,655		(0.6) %
Total retail	12,182		13,668		(10.9) %		41,749		40,699		2.6 %
Wholesale	514		921		(44.2) %		1,636		2,273		(28.0) %
Total Powersports Unit Sales	12,696		14,589		(13.0) %		43,385		42,972		1.0 %
Same Store Revenue
New retail vehicles	$    125.6		$    138.0		(9.0) %		$    417.5		$    403.6		3.4 %
Pre-owned retail vehicles	45.5		51.0		(10.8) %		154.6		153.5		0.7 %
Total retail	171.1		189.0		(9.5) %		572.1		557.1		2.7 %
Wholesale vehicles	3.4		2.0		70.0 %		10.4		6.6		57.6 %
Total Same Store Vehicles	174.5		191.0		(8.6) %		582.5		563.7		3.3 %
Finance & Insurance, net	19.9		22.0		(9.5) %		65.6		65.8		(0.3) %
Parts, Services, and Accessories	47.0		49.0		(4.1) %		143.8		144.3		(0.3) %
Total Powersports Revenue	$    241.4		$    262.0		(7.9) %		$    791.9		$    773.8		2.3 %
Same Store Gross Profit
New retail vehicles	$     16.5		$     19.0		(13.2) %		$     59.6		$     57.3		4.0 %
Pre-owned retail vehicles	7.0		8.0		(12.5) %		26.0		26.2		(0.8) %
Total retail	23.5		27.0		(13.0) %		85.6		83.5		2.5 %
Wholesale vehicles	(0.5)		—		NM		(0.7)		(0.2)		250.0 %
Total Same Store Vehicles	23.0		27.0		(14.8) %		84.9		$     83.3		1.9 %
Finance & Insurance, net	19.9		22.0		(9.5) %		65.6		65.8		(0.3) %
Parts, Services, and Accessories	22.9		23.0		(0.4) %		69.9		68.1		2.6 %
Total Same Store Gross Profit	$     65.8		$     72.0		(8.6) %		$    220.4		$    217.2		1.5 %
Same Store Powersports GPU(2)	$ 5,401.4		$ 5,267.8		2.5 %		$ 5,279.2		$ 5,336.7		(1.1) %

(1)	Same store revenue and same store gross profit are calculated on the same basis but exclude fleet sales, certain shared store support and corporate overhead expenses and the effects in all periods presented of the five stores that were closed or sold in 2025.
(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 $47.6 million in total cash, inclusive of restricted cash, and $203.7 million of non-vehicle net debt. Availability under the Company's powersports floor plan lines of credit totaled approximately $101.8 million as of September 30, 2026. Total Available Liquidity, defined as total cash plus availability under floorplan credit facilities, was $149.4 million as of September 30, 2026. Cash outflows from operating activities were $41.7 million for the nine months ended September 30, 2026, compared to inflows of $15.5 million for the same period in 2025. 

Investor Conference Call

The Company's management will host a conference call to discuss these results on November 10, 2026 at 4:30 p.m. Eastern Time. To access the conference call, United States callers may dial 1-800-717-1738 (1-646-307-1865 for callers outside of the United States) and enter conference ID 68455. A live and archived webcast will be accessible from the Company's Investor Relations website at https://investors.ridenow.com.

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 the United States, offering a wide selection of new and pre-owned motorcycles, all-terrain vehicles, utility terrain or side-by-side vehicles, personal watercraft, snowmobiles, and other powersports products. We also offer parts, apparel, accessories, finance & insurance products and services, and aftermarket products from a wide range of manufacturers. We are one of the largest purchasers of pre-owned powersports vehicles in the United States and utilize our proprietary RideNow Cash Offer tool to acquire vehicles directly from consumers. To learn more, please visit us online at https://www.ridenow.com.

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, expected financial forecasts including Adjusted EBITDA, business strategy and plans, including the anticipated benefits of our strategic initiatives, including our cost reduction actions and the anticipated cost savings therefrom, our Clear Price pricing model and recent acquisitions, industry and business trends, the expected duration and impact of macroeconomic, consumer demand and regulatory conditions on our business, our positioning when such conditions improve, the sufficiency of our liquidity and capital resources, our ability to service, refinance or repay our indebtedness on or prior to its maturity, our ability to comply with the covenants under our Credit Agreement, our expectations regarding the anticipated ABL Facility, growth opportunities, same store sales trends, 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 the United States of America ("GAAP"), the Company uses the following non-GAAP financial measures: EBITDA, Adjusted EBITDA, Adjusted Free Cash Flow, Non-Vehicle Net Debt, and Adjusted SG&A (collectively the "non-GAAP financial measures"). The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that they provide useful information about operating results, enhance the overall understanding of our operating performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. The non-GAAP measures used by the Company in this press release may be different from the measures used by other companies.

RideNow Group, Inc. Unaudited Condensed Consolidated Statements of Operations (amounts in millions, except share and per share data)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Revenue:
Powersports vehicles	$           175.5		$           204.3		$         587.1		$         595.3
Parts, service and accessories	47.1		50.8		143.9		149.3
Finance and insurance, net	21.7		24.9		70.5		73.2
Vehicle transportation services	—		1.0		—		7.8
Total revenue	244.3		281.0		801.5		825.6
Cost of revenue:
Powersports vehicles	154.0		177.4		504.2		512.6
Parts, service and accessories	24.8		26.9		75.4		79.7
Vehicle transportation services	—		0.7		—		6.2
Total cost of revenue	178.8		205.0		579.6		598.5
Gross profit	65.5		76.0		221.9		227.1
Selling, general and administrative	59.6		64.4		186.7		192.2
Depreciation and amortization	1.7		2.2		5.5		6.5
Impairment of franchise rights	—		—		—		34.0
Operating income (loss)	4.2		9.4		29.7		(5.6)
Other income (expense):
Floor plan interest expense	(3.2)		(3.1)		(7.9)		(8.5)
Loss on debt extinguishment	(5.7)		—		(5.7)		—
Other interest expense, net	(9.0)		(10.4)		(27.4)		(32.1)
Other (expense) income	—		0.1		(0.1)		0.5
Total other expense	(17.9)		(13.4)		(41.1)		(40.1)
Loss before income taxes	(13.7)		(4.0)		(11.4)		(45.7)
Income tax expense	0.2		0.1		0.3		0.3
Net loss	$           (13.9)		$             (4.1)		$          (11.7)		$          (46.0)
Loss per share
Basic	$           (0.36)		$           (0.11)		$          (0.30)		$          (1.21)
Diluted	$           (0.36)		$           (0.11)		$          (0.30)		$          (1.21)
Weighted average number of common shares outstanding
Basic	38,952,940		38,052,057		38,652,642		37,916,526
Diluted	38,952,940		38,052,057		38,652,642		37,916,526

 

RideNow Group, Inc. Condensed Consolidated Balance Sheets  (amounts in millions)
	September 30,		December 31,
	2026		2025
ASSETS	(Unaudited)
Current assets:
Cash	$              29.2		$              29.5
Restricted cash	18.4		13.4
Accounts receivable, net	26.6		28.9
Inventory	329.2		257.4
Prepaid expense and other current assets	7.5		5.5
Total current assets	410.9		334.7
Property and equipment, net	57.8		60.5
Right-of-use assets	143.8		150.4
Franchise rights and other intangible assets, net	129.5		127.0
Other assets	1.1		1.0
Total assets	$            743.1		$            673.6
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable and other current liabilities	$              79.1		$              77.7
Floor plan notes payable	291.9		218.4
Current portion of debt	0.7		0.4
Total current liabilities	371.7		296.5
Long-term liabilities:
Long-term debt, net of current maturities	218.3		207.2
Long-term portion of operating lease liabilities	122.3		128.0
Other long-term liabilities, including finance lease obligation	52.9		54.4
Total long-term liabilities	393.5		389.6
Total liabilities	765.2		686.1
Commitments and contingencies
Stockholders' deficit:
Additional paid-in capital	706.2		704.1
Accumulated deficit	(724.0)		(712.3)
Treasury stock	(4.3)		(4.3)
Total stockholders' deficit	(22.1)		(12.5)
Total liabilities and stockholders' deficit	$            743.1		$            673.6

 

RideNow Group, Inc. Unaudited Condensed Consolidated Statements of Cash Flows (amounts in millions)
	Nine Months Ended September 30,
	2026		2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$         (11.7)		$         (46.0)
Adjustments to reconcile net loss to net cash (used in) provided by              operating activities:
Depreciation and amortization	5.5		6.5
Stock-based compensation	2.1		1.3
Amortization of debt discount and issuance costs	4.7		7.2
Interest paid-in-kind capitalized in debt principal	3.1		1.9
Impairment of franchise rights	—		34.0
Loss on debt extinguishment	5.7		—
Provision for credit losses	0.4		—
Loss on fixed asset disposals	0.2		—
Gain on lease termination	—		(0.4)
Changes in operating assets and liabilities:
Accounts receivable	1.9		(3.2)
Inventory	(67.1)		(25.4)
Prepaid expenses and other assets	(1.2)		(3.0)
Accounts payable and other current liabilities	0.7		9.4
Other liabilities	2.1		2.5
Floor plan trade note borrowings, net	11.9		30.7
Net cash (used in) provided by operating activities	(41.7)		15.5
CASH FLOWS FROM INVESTING ACTIVITIES
Cash used for acquisition	(4.1)		—
Purchase of property and equipment	(2.5)		(5.0)
Capitalization of internal-use software costs	(0.5)		(0.1)
Net cash used in investing activities	(7.1)		(5.1)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of debt, net of debt discount	213.4		10.0
Payments of debt issuance costs	(7.1)		—
Repayments of debt	(209.0)		(59.1)
Net proceeds on non-trade floor plan facilities	58.4		(5.3)
Payment of existing credit agreement exit fee	(2.1)		—
Shares redeemed for employee tax obligations	(0.1)		—
Other	—		(0.9)
Net cash provided by (used in) financing activities	53.5		(55.3)
NET CHANGE IN CASH AND RESTRICTED CASH	4.7		(44.9)
Cash and restricted cash at beginning of period	42.9		96.7
Cash and restricted cash at end of period	$          47.6		$          51.8

RideNow Group, Inc.
Non-GAAP Measures
(Unaudited)
(amounts in millions)

EBITDA and Adjusted EBITDA

We define EBITDA as net income (loss) adjusted to add back non-floor plan 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, lease expense associated with favorable related party leases in excess of contractual lease payments, impairment of franchise rights, 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.

EBITDA and Adjusted EBITDA are adjusted to reflect an addback for floor plan interest expense. Our industry typically treats interest expense on vehicle floor plan debt as an 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 September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Net loss (GAAP)	$          (13.9)		$           (4.1)		$          (11.7)		$          (46.0)
Add back:
Non-floor plan interest expense	9.0		10.4		27.4		32.1
Depreciation and amortization	1.7		2.2		5.5		6.5
Income tax expense	0.2		0.1		0.3		0.3
EBITDA (non-GAAP)	(3.0)		8.6		21.5		(7.1)
Adjustments:
Non-cash stock-based compensation	0.7		0.8		2.1		1.3
Lease expense associated with favorable related party leases in excess of contractual lease payments	0.2		0.3		0.6		0.8
Other costs(1)	1.6		2.6		5.1		6.4
Transaction costs(2)	5.8		—		5.8		—
Management transition costs	—		—		—		1.1
Impairment of franchise rights	—		—		—		34.0
Adjusted EBITDA (non-GAAP)	$            5.3		$           12.3		$           35.1		$           36.5

(1)	Other costs, such as costs incurred for litigation not part of our normal, ongoing operations.
(2)	Represents costs expensed for the debt refinancing in the third quarter of 2026.

RideNow Group, Inc.
Non-GAAP Measures
(Unaudited)
(amounts in millions)

Adjusted Free Cash Flow

Beginning with the period ended June 30, 2026, we present our non-GAAP cash flow measures as Adjusted Free Cash Flow. We believe this revised metric provides investors with a more representative view of the cash generated by our core operations by incorporating borrowings from non-trade floor plan facilities into operating cash flows to align non-trade inventory financing cash flows with the underlying operational capital structure, as well as normalizing for period-over-period variations. We believe this metric is useful to investors because it provides an additional means to evaluate cash flow trends in the business before considering non-operational or unique working capital financing adjustments.

We define Adjusted Free Cash Flow as GAAP cash flows (used in) or provided by operating activities, adjusted for the net proceeds from (payments on) non-trade floor plan facilities, less purchases of property and equipment.

Adjusted Free Cash Flow has limitations in that it does not represent the total increase or decrease in the cash balance for the period, nor does it represent residual cash flow available for discretionary expenditures. Therefore, Adjusted Free Cash Flow should be evaluated alongside our Unaudited Condensed Consolidated Statement of Cash Flows prepared in accordance with GAAP.

A reconciliation of cash flows from operating activities to Adjusted Free Cash Flow is provided below:

	Nine Months Ended September 30,
	2026		2025
Cash flows (used in) provided by operating activities (GAAP)	$                  (41.7)		$                   15.5
Net proceeds on non-trade floor plan facilities	58.4		(5.3)
Purchase of property and equipment	(2.5)		(5.0)
Adjusted Free Cash Flow (non-GAAP)	$                   14.2		$                     5.2

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 September 30, 2026		As of December 31, 2025
Long-term debt, including current maturities (GAAP)	$                 219.0		$                 207.6
Add back: unamortized debt discount and issuance costs	13.9		11.2
Principal of long-term debt, including current maturities	232.9		218.8
Less: unrestricted cash	(29.2)		(29.5)
Non-Vehicle Net Debt (non-GAAP)	$                 203.7		$                 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 September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
SG&A (GAAP)	$         59.6		$         64.4		$       186.7		$       192.2
% of Gross Profit	91.0 %		84.7 %		84.1 %		84.6 %
Adjustments:
Lease expense associated with favorable related party leases in excess of contractual lease payments	(0.2)		(0.3)		(0.6)		(0.8)
Other costs(1)	(1.6)		(2.6)		(5.1)		(6.4)
Transaction costs(2)	(0.1)		—		(0.1)		—
Management transition costs	—		—		—		(1.1)
Adjusted SG&A (non-GAAP)	$         57.7		$         61.5		$       180.9		$       183.9
% of Gross Profit(3)	88.1 %		80.9 %		81.5 %		81.0 %

(1)	Other costs, such as costs incurred for litigation not part of our normal, ongoing operations.
(2)	Represents costs recognized within SG&A for the debt refinancing in the third quarter of 2026.
(3)	Ratio of Adjusted SG&A to Gross Profit.

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SOURCE RideNow Group, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were RideNow Group's third-quarter 2026 earnings results?

RideNow reported $244.3 million in revenue and a $13.9 million net loss for the quarter ended September 30, 2026. Revenue declined 13.1% year over year, and the net loss widened from $4.1 million. Basic and diluted loss per share was $0.36, compared with $0.11 a year earlier.

What does RideNow expect for fourth-quarter earnings and future cost savings?

RideNow expects fourth-quarter adjusted EBITDA to exceed the third quarter and an incremental $10 million in annual run-rate cost savings as it exits 2027. Third-quarter adjusted EBITDA was $5.3 million. These are company expectations, not completed results.

How much liquidity did RideNow have at September 30, 2026?

RideNow had $149.4 million in total available liquidity at September 30, 2026. That consisted of $47.6 million in total cash, including restricted cash, plus approximately $101.8 million available under powersports floor plan credit facilities, which finance vehicle inventory.

Why did RideNow's same-store revenue decline in the third quarter of 2026?

RideNow attributed the 7.9% same-store powersports revenue decline to lower unit sales, largely reflecting reduced consumer discretionary spending and the initial implementation of its Clear Price pricing model. The company introduced the model to align with Federal Trade Commission guidance and enforcement priorities on vehicle pricing and fee transparency.

How does RideNow calculate its same-store results?

RideNow's same-store revenue and gross profit exclude fleet sales, certain shared store support and corporate overhead expenses, and the effects in all presented periods of five stores closed or sold in 2025. These exclusions distinguish the same-store figures from the company's overall results.