RideNow Group (NASDAQ:RDNW) executives told investors the company’s turnaround efforts gained traction in the fourth quarter of 2025, highlighted by sharply higher adjusted EBITDA and improving same-store metrics, even as the company exited its transportation business.
Management highlights: turnaround progress and strategic focus
Chairman, CEO and President Michael Quartieri said the company has remained “laser-focused” on actions within its control, including putting the right leadership in place, tightening execution in stores, and improving back-office support. Quartieri said RideNow saw momentum build through 2025, with year-over-year improvement in adjusted EBITDA in the second quarter, followed by year-over-year gains in gross profit and adjusted EBITDA in the third and fourth quarters.
Quartieri also outlined continued actions on the company’s store footprint. In the fourth quarter, RideNow sold two locations in Southern California. In Tucson, it consolidated an Indian store into a neighboring RideNow location and combined two Harley-Davidson locations “under one roof.” He noted the company had also closed stores in Sturgis, Cincinnati, and a used-only store in Houston earlier in the year.
Looking ahead, Quartieri said RideNow expects momentum to continue into the first quarter as the macro environment improves, which he said could help position the company for a potential refinancing of its term loan. He also said the company intends to increase free cash flow and deploy capital with what he called “owner-oriented” discipline, and that RideNow is positioned to return to acquisition-driven growth in 2026 alongside operational improvements.
Fourth-quarter results: adjusted EBITDA jumps, margins improve
Chief Financial Officer Josh Barsetti reported fourth-quarter revenue of $256.9 million, down from $269.6 million in the prior-year quarter. He attributed the decline to the expected reduction in Wholesale Express as that business was wound down. Excluding Wholesale Express, Barsetti said revenue was flat year-over-year.
Adjusted EBITDA increased 341% to $9.7 million, up from $2.2 million in the year-ago quarter. Barsetti said adjusted SG&A expenses were $59.9 million, or 84.5% of gross profit, compared with $62.3 million, or 92.3% of gross profit, a year earlier.
RideNow sold 15,642 major units in the quarter, up 294 units, or 1.9%, from the prior-year period. New powersports major unit sales totaled 9,924, down 2.9%, while pre-owned unit sales rose 5.1% to 4,125. Barsetti said higher total powersports unit sales, along with continued improvement across revenue categories, drove a $6.5 million improvement in powersports gross profit dollars to $70.7 million.
Gross margins improved in both new and pre-owned categories. New unit gross margin was 13.2% versus 10.8% in the prior-year quarter. Pre-owned gross margin improved to 14.4% from 12.3%.
Fixed operations (parts, service and accessories) generated $48.5 million in revenue and $22.7 million in gross profit. Barsetti said fixed operations gross profit per unit (GPU) was $1,615, up $60 year-over-year. Finance and insurance produced $24.1 million in revenue, with GPU of $1,715, up $117 from $1,598 in the prior-year quarter.
Same-store reporting begins after portfolio changes
Following multiple store closures and dispositions during 2025, management said the company enhanced its disclosures and will now report same-store revenue, gross profit, and unit volume for the powersports segment. Barsetti said the “same stores” set excludes five stores permanently closed as of year-end 2025 and any fleet-related units, and that a supplemental table in the earnings release provided quarterly same-store information for 2025 and 2024.
On a same-store basis, RideNow reported fourth-quarter revenue of $256.9 million compared with $241.6 million in the year-ago period, a 6.3% increase. Same-store gross profit rose 13.8% to $66.8 million from $58.7 million. Same-store unit sales were 15,420, up from 14,320.
Barsetti said the fourth quarter marked the second consecutive quarter of same-store growth in revenue and units sold and the third consecutive quarter of same-store growth in gross profit.
Full-year 2025 results and balance sheet snapshot
For the full year, Barsetti reported $1.08 billion in revenue and gross profit of $298 million. He noted that Wholesale Express revenue in the prior year was $58 million and gross profit was $13.4 million.
Adjusted SG&A declined $26.2 million year-over-year to $243.8 million, which management described as a 9.7% reduction. Adjusted EBITDA was $46.2 million, up 40.4% versus the prior year. Total powersports unit sales were 61,894, down from 64,988 in the prior year.
On the balance sheet, RideNow ended the quarter with $42.9 million in total cash, including restricted cash. Non-vehicle net debt was $189.3 million. Availability under short-term revolving floor plan credit facilities totaled about $123.1 million, and total available liquidity—defined as unrestricted cash plus floor plan availability—was $152.6 million.
Cash inflows from operating activities were $15.9 million for 2025, and free cash flow was $10.3 million, compared with $99.4 million and $97.4 million, respectively, in the prior year. Barsetti said the prior-year figures were impacted by proceeds from the sale of a finance receivable portfolio and a reduction of excess major unit inventory.
Q&A: further cost opportunities, used-only store closure, and demand drivers
In the question-and-answer session, management said additional cost reduction opportunities remain. Responding to a question about the magnitude of cost takeout in 2025, executives said they did not have an exact figure available during the call but noted much of the cost action occurred toward the latter part of the year. They added that, while 2025 efforts focused on the “front end,” RideNow plans to focus more on back-office efficiency in 2026.
Asked about the closure of the used-only store in Houston and whether the model could work elsewhere, management said it was a mix of factors but emphasized profitability. Executives said it is more profitable to place used inventory within existing RideNow locations because there is no incremental cost to doing so, and that making the investment required to scale a used-only model did not make sense given expected returns.
On early 2026 retail trends and external factors, management cited healthier OEM inventories compared with a year ago and said tax refunds were up about 9% to 10%, referencing what executives called the “Big Beautiful Bill.” Management also pointed to declining interest rates as supportive for demand, noting that about two-thirds of customers finance purchases. Executives said they have continued to see improved momentum into the first quarter, while also acknowledging broader uncertainty tied to an ongoing Middle East crisis.
On inventory, management said the broader industry appears to have taken steps to improve health and that RideNow is not seeing widespread discounting from competitors. The company said it aims to keep three to four months of inventory and is currently in that range, with the “vast majority” of inventory under 120 days. Management added it would like more used inventory, but said it is not chasing units that would not be profitable.
About RideNow Group (NASDAQ:RDNW)
RideNow Group, Inc (NASDAQ: RDNW) is a leading U.S. retailer of powersports vehicles, offering both new and pre-owned inventory to enthusiasts and recreational riders. The company’s dealerships carry a diverse lineup of motorcycles, all-terrain vehicles (ATVs), side-by-sides, personal watercraft and snowmobiles from major manufacturers. In addition to vehicle sales, RideNow Group provides comprehensive service and maintenance, aftermarket parts and accessories and a range of financing and protection plans tailored to powersports customers.
Founded in 2004 and headquartered in Houston, Texas, RideNow Group has grown through a combination of organic expansion and strategic acquisitions.
