RideNow Group (NASDAQ: RDNW) narrows Q1 2026 loss as revenue grows
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
RideNow Group, Inc. reported higher first quarter 2026 revenue and a sharply reduced net loss while continuing to use cash in operations. Total revenue rose to $260.4 million, up 6.4% from $244.7 million, driven by powersports growth and stronger same store performance.
Net loss improved to $4.3 million from $9.7 million, with net loss per share narrowing to $0.11 from $0.26. Adjusted EBITDA increased to $9.3 million from $7.0 million. However, operating cash flow was a $27.6 million outflow versus a $6.9 million outflow, as inventory rose and debt levels remained high, with non-vehicle net debt of $190.7 million.
Positive
- None.
Negative
- None.
Insights
Revenue and profitability trends improved, but cash burn and leverage remain key constraints.
RideNow Group delivered Q1 2026 revenue of $260.4M, up 6.4%, with powersports same store revenue up 13.1% and total powersports gross profit rising to $71.6M. Net loss was cut by more than half to $4.3M, and Adjusted EBITDA climbed to $9.3M from $7.0M.
At the same time, the business consumed $27.6M in operating cash, significantly more than the prior-year $6.9M outflow, largely alongside a higher inventory balance. Non-vehicle net debt was $190.7M as of March 31, 2026, and term loan leverage ratios remained well inside covenants (3.5x vs 6.5x maximum).
The company reported total available liquidity of $145.7M as of March 31, 2026, including cash and floor plan availability. Future filings may provide more detail on how management balances growth, inventory, and debt reduction against these leverage and liquidity metrics.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2026 Revenue: $260.4 million
Q1 2026 Net Loss: $4.3 million
Q1 2026 Adjusted EBITDA: $9.3 million
+5 more
8 metrics
Q1 2026 Revenue
$260.4 million
Three months ended March 31, 2026; up 6.4% year over year
Q1 2026 Net Loss
$4.3 million
Three months ended March 31, 2026; improved 55.7% vs prior-year loss
Q1 2026 Adjusted EBITDA
$9.3 million
Non-GAAP metric; up from $7.0 million in Q1 2025
Operating Cash Flow
($27.6 million)
Cash used in operating activities for three months ended March 31, 2026
Total Available Liquidity
$145.7 million
Total cash plus floor plan availability as of March 31, 2026
Non-Vehicle Net Debt
$190.7 million
Non-GAAP measure as of March 31, 2026
Net Loss Per Share
$0.11
Basic and diluted net loss per share for Q1 2026
Consolidated Total Net Leverage Ratio
3.5x
Credit agreement covenant calculation as of March 31, 2026; max allowed 6.5x
Key Terms
Adjusted EBITDA, Free Cash Flow, Non-Vehicle Net Debt, Same Store Metrics, +1 more
5 terms
Adjusted EBITDA financial
"Adjusted EBITDA increased to $9.3 million from $7.0 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.
Free Cash Flow financial
"Free Cash Flow (non-GAAP) was $ (28.2) million in 2026."
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Non-Vehicle Net Debt financial
"Non-Vehicle Net Debt (non-GAAP) was $190.7 million as of March 31, 2026."
Non-vehicle net debt is a company’s total interest-bearing debt minus cash and short-term liquid assets, after excluding debt that directly funds vehicle-related activities such as customer auto loans, leases or inventory financing. For investors it isolates the underlying corporate borrowing burden from specialized, self-supporting financing programs, so you can better judge the core business’s leverage and financial flexibility—think of it as looking at household debt separate from a mortgage that is carried by a rental property.
Same Store Metrics financial
"Same Store Metrics (1) Three Months Ended March 31, $ in millions, except units and per unit."
Consolidated Total Net Leverage Ratio financial
"Key Term Loan Credit Agreement Covenant Compliance Calculations as of March 31, 2026 Consolidated Total Net Leverage Ratio 3.5x."
Earnings Snapshot
Revenue: $260.4 million
Q1 2026
Revenue
$260.4 million
up 6.4% year over year
Net loss
$4.3 million
improved 55.7% vs prior-year loss of $9.7 million
Adjusted EBITDA
$9.3 million
up from $7.0 million (32.9% increase)
Net loss per share
$0.11
improved from $0.26 per share
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 14, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
| (Address of principal executive offices) | (Zip Code) | |||||||
Registrant’s telephone number, including area code (480 ) 755-5200
| (Former name or former address, if changed since last report) | ||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2 (b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02. Results of Operations and Financial Condition.
On May 14, 2026, RideNow Group, Inc. (the “Company”) issued a press release announcing its results for the first quarter ended March 31, 2026. A copy of the press release is attached hereto as Exhibit 99.1.
The information contained under Item 2.02 in this Current Report on Form 8-K, including Exhibit 99.1, is being furnished and, as a result, such information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d)Exhibits
| Exhibit | Description | |||||||
99.1 | Press Release, dated May 14, 2026 | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| RideNow Group, Inc. | ||||||||
| Date: May 14, 2026 | By: | /s/ Joshua J. Barsetti | ||||||
| Joshua J. Barsetti | ||||||||
| Executive Vice President and Chief Financial Officer | ||||||||
Exhibit 99.1
RideNow Group, Inc. Reports First Quarter 2026 Financial Results
Growth in Same Store Revenue, Gross Profit and Unit Volume in the First Quarter
CHANDLER, Arizona – May 14, 2026 – RideNow Group, Inc. (NASDAQ: RDNW), ("we", "our", the "Company", or "RideNow"), today announced financial results for the first quarter ended March 31, 2026.
Key First Quarter 2026 Highlights (Compared to First Quarter 2025)
•Powersports Revenue increased 6.4%, reaching $260.4 million, which represents an increase of $15.7 million.
•On a same store sales basis, Powersports Revenue was up 13.1%, driven by a 16.3% increase in unit sales.
•Powersports Gross profit was $71.6 million, up 8.3%.
•Selling, general & administrative expense ("SG&A") was $62.1 million, or 86.7% of total Company gross profit, compared to $61.1 million, or 90.9% of gross profit.
•Net loss improved 55.7% to a loss of $4.3 million compared to a net loss of $9.7 million.
•Adjusted EBITDA increased to $9.3 million from $7.0 million.
Commenting on the quarter, Chairman, Chief Executive Officer and President Michael Quartieri said, "I am invigorated by our team's unrelenting focus on execution, as evidenced by our first quarter results. Our tactical plan combines near-term initiatives to improve financial performance with structural changes to elevate the Company's strategic direction. All of our effort is focused on driving long-term value creation for our shareholders, and our first quarter results are further evidence that we are on the right trajectory."
First Quarter 2026 Results
Three Months Ended March 31, | |||||||||||||||||
| ($ 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 | % | |||||||||||||
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| 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
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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.
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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 $46.4 million in total cash, inclusive of restricted cash, and $190.7 million of non-vehicle net debt. Availability under the Company's powersports floor plan lines of credit totaled approximately $99.3 million as of March 31, 2026. Total Available Liquidity, defined as total cash plus availability under floorplan credit facilities, was $145.7 million as of March 31, 2026. Cash outflows from operating activities were $27.6 million for the first three months of 2026, compared to outflows of $6.9 million for the same period in 2025.
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, United States callers may dial 1-800-717-1738 (1-646-307-1865 for callers outside of the United States) and enter conference ID 60701. A live and archived webcast will be accessible from the Company's Investor Relations website at https://investors.ridenow.com.
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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, 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.
5
Investor Relations Contact:
investors@ridenow.com
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, 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.
6
RideNow Group, Inc.
Unaudited Condensed Consolidated Statements of Operations
Unaudited Condensed Consolidated Statements of Operations
(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 | |||||||||
7
RideNow Group, Inc.
Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets
(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 | |||||||
8
RideNow Group, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
Unaudited Condensed Consolidated Statements of Cash Flows
(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 | |||||||
9
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 contractual lease payments | 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.
10
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 | |||||||
11
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 contractual lease payments | (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.
12
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.
13
FAQ
How did RideNow Group (RDNW) perform financially in Q1 2026?
RideNow Group reported Q1 2026 revenue of $260.4 million, up 6.4% from $244.7 million a year earlier. Net loss improved to $4.3 million from $9.7 million, while Adjusted EBITDA rose to $9.3 million from $7.0 million.
What were RideNow Group (RDNW) same store sales trends in Q1 2026?
Same store powersports revenue for RideNow Group grew 13.1% in Q1 2026 versus Q1 2025. Same store total powersports unit sales increased 16.3%, supported by 19.3% growth in new vehicles and 11.5% growth in pre-owned vehicles at the same locations.
Did RideNow Group (RDNW) improve profitability metrics in Q1 2026?
Profitability metrics improved, with Q1 2026 net loss narrowing to $4.3 million from $9.7 million and Adjusted EBITDA increasing to $9.3 million from $7.0 million. Operating income also doubled to $7.6 million from $3.8 million compared to Q1 2025.
What was RideNow Group (RDNW) cash flow and liquidity position in Q1 2026?
RideNow Group used $27.6 million of cash in operating activities in Q1 2026, versus a $6.9 million outflow a year earlier. The company reported $46.4 million in total cash and total available liquidity of $145.7 million as of March 31, 2026.
How leveraged is RideNow Group (RDNW) based on Q1 2026 credit covenants?
As of March 31, 2026, RideNow Group reported a Consolidated Total Net Leverage Ratio of 3.5x against a maximum allowed 6.5x. The Consolidated Senior Secured Net Leverage Ratio was 3.3x, below the 6.25x covenant threshold, indicating headroom under its term loan covenants.
What were RideNow Group (RDNW) powersports unit sales in Q1 2026?
In Q1 2026, RideNow Group sold 9,322 new and 4,593 pre-owned powersports units at retail, totaling 13,915 units. Including wholesale, total powersports unit sales reached 14,694, up 11.4% from 13,186 units in Q1 2025.