RideNow Group (NASDAQ:RDNW) Issues Quarterly Earnings Results

RideNow Group (NASDAQ:RDNW) released its earnings results on Tuesday. The company reported ($0.36) earnings per share for the quarter, FiscalAI reports. The business had revenue of $244.30 million during the quarter.

Here are the key takeaways from RideNow Group’s conference call:

• RideNow attributed much of its Q3 downturn to its August rollout of Clear Price: same-store retail units fell 10.9% year over year, and Adjusted EBITDA dropped to $5.3 million from $12.3 million. Management estimates Clear Price accounted for about half the unit decline and $4 million of the $7 million EBITDA decrease.
• Management cited macroeconomic pressure on discretionary purchases, alongside lower new- and used-vehicle gross margins. New inventory was slightly above five months of supply, though the company expects it to return to target levels by the end of Q1.
• RideNow expects Q4 Adjusted EBITDA to exceed Q3, despite the typical seasonal pattern, and said recent monthly unit trends have been closer to mid- to low-single-digit declines year over year. Management believes broader adoption of transparent pricing could reduce the competitive disadvantage of its Clear Price policy.
• Cost actions taken during the quarter are expected to reduce annualized expenses by $4.6 million, with management targeting an additional $10 million of permanent run-rate savings by the end of 2027 through operational changes and expanded AI use.
• RideNow refinanced its $220 million Oaktree term loan with a facility maturing in September 2031, removing restricted milestones and avoiding further stock dilution. The company ended Q3 with $149.4 million in total available liquidity and said it is in advanced discussions for an additional asset-backed lending facility, though completion is not assured.

RideNow Group Trading Down 15.6%

Shares of RideNow Group stock traded down $0.87 on Thursday, reaching $4.70. 10,531 shares of the company were exchanged, compared to its average volume of 73,330. The stock has a fifty day moving average price of $5.41 and a 200-day moving average price of $6.31. The firm has a market capitalization of $183.35 million, a price-to-earnings ratio of -9.79 and a beta of 1.34. RideNow Group has a fifty-two week low of $4.52 and a fifty-two week high of $8.55.

Hedge Funds Weigh In On RideNow Group

Institutional investors have recently bought and sold shares of the stock. Engineers Gate Manager LP purchased a new stake in RideNow Group during the second quarter valued at about $82,000. Bank of America Corp DE increased its position in shares of RideNow Group by 238.5% in the first quarter. Bank of America Corp DE now owns 32,456 shares of the company’s stock worth $229,000 after acquiring an additional 22,868 shares in the last quarter. Bank of New York Mellon Corp purchased a new position in shares of RideNow Group in the second quarter worth approximately $296,000. Hillsdale Investment Management Inc. raised its holdings in shares of RideNow Group by 8.4% during the first quarter. Hillsdale Investment Management Inc. now owns 64,703 shares of the company’s stock valued at $457,000 after acquiring an additional 5,000 shares during the period. Finally, Russell Investments Group Ltd. raised its holdings in shares of RideNow Group by 6,144.1% during the third quarter. Russell Investments Group Ltd. now owns 108,085 shares of the company’s stock valued at $594,000 after acquiring an additional 106,354 shares during the period. Hedge funds and other institutional investors own 66.14% of the company’s stock.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on RDNW. DA Davidson lowered their price target on RideNow Group from $9.00 to $8.00 and set a “neutral” rating on the stock in a research report on Wednesday, August 12th. Robert W. Baird cut their price objective on RideNow Group from $9.00 to $5.50 and set a “neutral” rating for the company in a report on Wednesday. Weiss Ratings upgraded RideNow Group from a “sell (e+)” rating to a “sell (d-)” rating in a report on Tuesday, October 27th. Finally, Texas Capital cut RideNow Group from a “strong-buy” rating to a “hold” rating in a research note on Friday, October 30th. Three equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, RideNow Group currently has a consensus rating of “Reduce” and an average price target of $6.75.

About RideNow Group

RumbleOn, Inc. primarily operates as a powersports retailer in the United States. It operates in two segments, Powersports and Vehicle Transportation Services. The Powersports segment provides new and pre-owned motorcycles, all-terrain vehicles, utility terrain or side-by-side vehicles, personal watercraft, snowmobiles, and other powersports products. It also offers parts, apparel, accessories, finance and insurance products and services, and aftermarket products, as well as repair and maintenance services.