Rumbleon 2025 Q2 Earnings Dramatic Widening of Net Loss

Rumbleon (RMBL) reported its fiscal 2025 Q2 earnings on August 11, 2025, delivering a starkly negative performance amid declining revenue and a sharply expanded net loss. The results fell significantly short of positive expectations, with the company posting a loss per share that increased by 4,150% year-over-year. The results, coupled with the CEO’s absence of specific quantitative guidance, raised concerns over the company’s near-term trajectory.

Rumbleon’s total revenue for Q2 2025 dropped by 11.0% to $299.90 million, compared to $336.80 million in the same period last year. Powersports vehicles remained the largest contributor at $219 million, followed by Parts, service and accessories at $52.40 million. Finance and insurance, net, generated $27.20 million, while Vehicle transportation services contributed $1.30 million.

The company's losses deepened dramatically, with a net loss of $-32.20 million in Q2 2025—representing a 4,500% increase from the $-700,000 loss in Q2 2024. Earnings per share also worsened, falling to a loss of $0.85 from a minimal loss of $0.02 per share. This marked a significant deterioration in profitability. The performance was far from encouraging, with the sharp rise in losses signaling significant operational and financial headwinds.

The stock price of Rumbleon has continued to decline in the post-earnings period, with a 0.50% drop during the latest trading day and a 5.66% fall over the most recent full trading week. Month-to-date, the stock has plummeted by 22.48%. A strategy of buying RMBL after earnings and holding for 30 days has resulted in a -79.61% return, significantly underperforming the benchmark by 164.54%. The strategy exhibits a maximum drawdown of 0% and a Sharpe ratio of -0.32, suggesting a high-risk, low-reward profile.

Michael A. Quartieri, CEO, acknowledged the company's challenges but highlighted progress in adjusted EBITDA despite lower sales volumes. He credited cost discipline and operational improvements for the better performance, emphasizing robust demand in the pre-owned segment amid difficult conditions for new unit sales. Quartieri outlined key strategic priorities, including leadership realignment, cost restructuring, and store performance management, all aimed at fostering long-term value creation. He also noted the company’s rebranding to RideNow Group and the extension of a 13-month term loan maturity as part of its broader restructuring.

Quartieri expressed optimism about the company’s future but did not provide specific quantitative forward-looking targets for revenue or EPS. Instead, he indicated confidence in higher adjusted EBITDA and increased free cash flow as initiatives take hold. He also outlined plans to extend the debt maturity profile and explore ways to lower the cost of capital. A renewed focus on operational discipline and accountability was underscored, with Quartieri expressing growing conviction in Rumbleon’s ability to overcome its challenges.

The Nigerian news landscape on August 12, 2025, featured a mix of political and economic developments. President Bola Tinubu met with Governor Godwin O. Abbot with the company.

Revenue

Rumbleon's Q2 2025 revenue totaled $299.90 million, a decline of 11.0% compared to the $336.80 million recorded in Q2 2024. Powersports vehicles remained the dominant segment, contributing $219 million to the top line. The Parts, service, and accessories segment brought in $52.40 million, while the Finance and insurance, net segment accounted for $27.20 million. Vehicle transportation services added a modest $1.30 million to the overall revenue.

Earnings/Net Income

The company’s earnings performance deteriorated sharply in Q2 2025. Rumbleon reported a net loss of $-32.20 million, compared to a net loss of $-700,000 in Q2 2024, reflecting a 4,500% year-over-year increase in losses. On a per-share basis, the loss widened to $0.85 from $0.02, representing a 4,150% increase in the loss per share. The significant decline in profitability underscores the company’s ongoing financial challenges and raises concerns about its ability to return to profitability in the near term.

Price Action

Post Earnings Price Action Review

The performance of Rumbleon’s stock following the Q2 2025 earnings report has been exceptionally weak. A strategy of buying RMBL after the earnings and holding for 30 days has resulted in a -79.61% return, a figure that underperforms the benchmark by 164.54%. The lack of investor confidence is evident, with the stock experiencing a 0.50% decline on the latest trading day and a 5.66% drop over the past week. The month-to-date loss of 22.48% further highlights the stock’s underperformance. Despite these losses, the strategy has recorded a maximum drawdown of 0% and a Sharpe ratio of -0.32, indicating a high-risk profile with little potential for positive returns. The poor post-earnings price action suggests that the market is not optimistic about the company’s ability to reverse its downward trajectory in the near term.

CEO Commentary

CEO Michael A. Quartieri acknowledged the significant challenges faced by Rumbleon in Q2 2025 but emphasized progress in adjusted EBITDA and ongoing efforts to drive operational improvements. He attributed the stronger EBITDA performance to cost discipline and enhanced operational efficiency, despite a decline in sales volumes. Quartieri also highlighted the growing demand for pre-owned vehicles, a trend he believes will continue to offset some of the challenges in the new vehicle segment. Looking ahead, he outlined strategic priorities including leadership realignment, cost restructuring, and performance management for individual stores, all aimed at building long-term value. The CEO also noted the company’s rebranding to RideNow Group and the extension of a 13-month term loan as key steps in restructuring and stabilizing the business. Quartieri reiterated a commitment to operational discipline and accountability, expressing optimism about the company’s future as it works to address its current financial and operational challenges.

Guidance

Michael A. Quartieri did not provide specific quantitative guidance for Rumbleon’s future revenue or earnings per share, but he expressed confidence in higher adjusted EBITDA and increased free cash flow as ongoing initiatives take hold. The CEO also indicated that the company is actively evaluating opportunities to reduce the cost of capital and extend the debt maturity profile. Quartieri emphasized the importance of cash flow discipline in driving value creation and outlined plans to rebuild the Wholesale Express segment through new B2C strategies and relationship-based approaches. While forward-looking targets were not provided, the CEO remained optimistic about the sales cycle turning positive as the company continues to focus on operational improvements and financial stability.