RumbleOn 2025 Q1 Earnings Misses Targets as Net Loss Improves 5.8%

RumbleOn (RMBL) reported its fiscal 2025 Q1 earnings on May 07th, 2025. Despite missing expectations with an EPS of -$0.26, the company showed a modest improvement in net loss. RumbleOn's revenue for Q1 2025 was $244.7 million, down 20.5% from the prior year. The company maintained its commitment to operational efficiencies and strategic initiatives to stabilize revenue. RumbleOn plans to focus on its powersports segment performance and liquidity to enhance its financial position moving forward.

Revenue

RumbleOn's Q1 2025 revenue dropped 20.5% compared to the previous year, driven by a 3,399 decline in unit sales and an $8.8 million decrease in vehicle transportation services revenue.

Earnings/Net Income

RumbleOn narrowed its net loss to $9.70 million in Q1 2025, a 5.8% improvement from the previous year's $10.30 million net loss. However, the EPS of -$0.26 indicates continued challenges for the company.

Post-Earnings Price Action Review

Investors employing a strategy of purchasing RumbleOn shares after a revenue-equal quarter and holding for 30 days have seen a 7.56% return over the past five years. This positive return suggests some merit in this approach, although the overall performance remains relatively modest. The earnings report's results, coupled with this historical data, provide insights into potential investment strategies. However, it is essential to note that past performance does not guarantee future results, and the overall market environment and company-specific factors can influence stock performance. Evaluating the company's strategic initiatives, financial health, and market conditions is crucial in determining the potential success of such investment strategies.

CEO Commentary

Michael Quartieri, Chairman, Chief Executive Officer, and Interim Chief Financial Officer of RumbleOn, expressed pride in the team's performance despite a challenging consumer environment. He acknowledged a decline in unit sales in the powersports segment but emphasized ongoing progress in turnaround initiatives. Quartieri highlighted a reduction in SG&A expenses and indicated optimism about leveraging this momentum for future growth, stating, "the team is making progress on our turnaround initiatives, and we are looking forward to building on this momentum."

Guidance

RumbleOn anticipates continuing to navigate a challenging market, focusing on enhancing operational efficiencies and implementing strategic initiatives to stabilize and eventually grow revenue. The company emphasizes a commitment to improving its powersports segment performance and maintaining liquidity, aiming for a stronger financial position moving forward.

Additional News

In recent developments, RumbleOn has not engaged in any mergers or acquisitions within the last three weeks as of May 7, 2025. However, significant changes in the executive team have occurred, with Michael Quartieri stepping into the role of Interim Chief Financial Officer while maintaining his positions as Chairman and Chief Executive Officer. This leadership adjustment aims to streamline decision-making processes and strengthen strategic initiatives. Additionally, there have been no announcements regarding dividends or stock buybacks, reflecting the company's focus on maintaining liquidity and operational efficiency during this period. RumbleOn continues to prioritize enhancing its financial position amid challenging market conditions.