"RumbleOn's Q4 2024 Earnings: A Turnaround Story or a Temporary Blip?"

Ladies and Gentlemen, buckle up! We've got a rollercoaster ride of earnings to dissect, and it's all about RumbleOn, Inc. (NASDAQ: RMBL). The powersports retailer just dropped its Q4 2024 earnings, and let me tell you, it's a tale of two halves. On one hand, we've got some serious headwinds from the macroeconomic challenges of 2024. On the other, we've got a company that's pulling out all the stops to turn things around. So, let's dive in and see if RumbleOn is truly on the path to profitability or if this is just a temporary blip.



First things first, let's talk about the elephant in the room: the macroeconomic challenges. 2024 was a tough year for everyone, and RumbleOn was no exception. The powersports segment took a hit, with revenue dropping 13.4% year-over-year to $269.6 million. Unit sales for new powersports were down 9.5%, and pre-owned powersports saw an 8.8% decline. Ouch! That's a double whammy right there.

But here's where things get interesting. Despite these challenges, RumbleOn managed to reduce its net loss from a whopping $168.5 million in Q4 2023 to $56.4 million in Q4 2024. That's a 66.5% improvement, folks! How did they do it? Let's break it down:

1. Cost Cutting: RumbleOn slashed its selling, general, and administrative expenses (SG&A) by 21.4%, from $81.7 million to $64.2 million. That's a massive savings right there!

2. Inventory Management: The company reduced inventories by $106.9 million and floor plan notes payable by $81.4 million. Less inventory means less money tied up in stock, which is always a good thing.

3. Cash Flow: Operating cash inflows for 2024 totaled $99.4 million, compared to cash outflows of $38.9 million in 2023. That's a 355.5% improvement! RumbleOn is generating cash, and that's music to my ears.

4. Debt Reduction: The company fully repaid $38.8 million of 6.75% convertible senior notes upon maturity in January 2025 and raised $10 million in a rights offering. They're cleaning up their balance sheet, and that's a positive sign.

Now, let's talk about the future. RumbleOn's Chairman and Chief Executive Officer, Michael Quartieri, is confident that the company can deliver sustained, improved results in 2025. He's talking about the right inventory mix and a well-developed plan. But can they really pull it off?



Let's look at the numbers. In Q4 2024, RumbleOn reported an adjusted EBITDA of $2.2 million, compared to a loss of $0.3 million in the same period the previous year. That's a massive turnaround! But can they keep it up?

The sustainability of these improvements depends on several factors. RumbleOn needs to continue managing costs, optimizing inventory levels, and improving operational efficiency. They also need to navigate the macroeconomic challenges that lie ahead. But if they can do that, they're in a strong position to deliver sustained, improved results.

So, what's the verdict? Is RumbleOn a turnaround story or a temporary blip? I'm leaning towards the former. The company has shown that it can adapt to challenging conditions and make the tough decisions necessary to improve its financial performance. But remember, folks, this is a high-risk, high-reward play. You need to do your own research and make your own decisions.

In the meantime, keep your eyes on RumbleOn. This is a company that's fighting back, and it's a story worth watching. Stay tuned for more updates, and remember: the market hates uncertainty, but it loves a good turnaround story. BOO-YAH!