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- **EBITDA Soars 80%**: Q3 2025 adjusted EBITDA of $12.3 million reflects successful cost-cutting and operational turnaround.
- **Aircraft Carrier Success**: Consolidated store strategy boosts margins and customer experience, with 15 locations now operating under the model.
- **Debt Restructuring Wins**: $4.4 million annual interest savings from term loan refinancing and debt repayment.
- **Pre-Owned Profitability**: 16.1% gross margin highlights improved inventory management and reduced markdowns.
- **Spring Inventory Caution**: Management will selectively buy pre-owned inventory for spring 2026, prioritizing high-margin items.

**【CEO Summary Section】**
- **Turnaround Progress**: Q3 2025 marked the first year-over-year improvement in core powersports revenue, unit sales, and gross profit since Q2 2023. Adjusted EBITDA reached $12.3 million, up 80% from Q3 2024, driven by cost reductions and operational efficiency.
- **Aircraft Carrier Strategy**: Consolidated two smaller stores into a single "aircraft carrier" in Fort Worth, TX, improving economies of scale and customer experience. Similar consolidations are planned, with OEM approvals required for each move.
- **Financial Restructuring**: Extended term loan maturity to September 2027, reduced interest rate, and repaid $20 million of debt, saving $4.4 million annually in interest costs.
- **Inventory Health**: Pre-owned gross margin improved to 16.1% (from 14.6%), with healthier inventory turnover and reduced markdowns.

**【CFO Financial Commentary】**
- **Topline Performance**: Total revenue $281 million, with powersports segment up 3.9% in units sold (15,949 units) and pre-owned gross profit up $4.9 million.
- **Cost Control**: SG&A expenses as a % of gross profit improved to 80.9% (from 86.5%), reflecting disciplined expense management.
- **Segment Highlights**: Fixed operations (parts/service) generated $23.9 million gross profit, while vehicle transportation revenue declined 94% due to Wholesale Express exit.
- **Liquidity**: $51.8 million cash on hand and $182.9 million total liquidity, supporting strategic initiatives.

**【Q&A Key Highlights】**
- **Consumer Sentiment**: 65-70% of customers use financing, benefiting from Fed rate cuts. Management expects gradual improvement in consumer spending as rate impacts materialize.
- **Inventory Strategy**: Cautious pre-owned buying ahead of spring 2026, focusing on high-margin, low-turn inventory. New unit gross margin improved to 12.6% (from 11.3%).
- **OEM Relationships**: Consolidations require OEM approval, ensuring market share preservation. Healthy OEM inventory levels reduce promotional pressure.
- **Spring Prep**: $10.5 million free cash flow will fund disciplined inventory purchases, avoiding excess stock ahead of peak season.

RideNow Group, Inc. (RDNW) Q3 2025 Earnings Call Transcript

- **Rebranding and Restructuring**: Shift to RideNow Group with operational cost cuts ($5.9M YoY) and debt refinancing reducing interest by $3.4M.
- **Pre-Owned Growth**: +10.2% pre-owned units sold vs -11.5% new units, driving EBITDA up $1M to $17.2M despite 11% revenue decline.
- **Market Stabilization**: Post-tax reform, pricing stabilization and early new unit demand recovery observed in Q2/Q3 2025.
- **Wholesale Express Reset**: Testing B2C relocation business to replace 91.4% YoY decline in traditional B2B revenue.

**【CEO Strategic Initiatives and Rebranding】**
- Rebranded to RideNow Group Inc. (ticker: RDNW) to reflect a return to core powersports roots, with headquarters relocating to Chandler, AZ.
- Implemented cost discipline and operational restructuring, resulting in 8.3% reduction in SG&A expenses ($5.9M YoY decline).
- Focused on pre-owned vehicle demand growth (+10.2% units YoY) amid new unit sales decline (-11.5%), driven by tariff-induced consumer shift.
- Extended debt maturity by 13 months to Sept 2027, reducing annual interest expense by $3.4M through $20M debt paydown and 0.5% rate reduction.

**【Financial Performance and Debt Amendment】**
- Q2 2025: Revenue $300M (-11% YoY), Adjusted EBITDA $17.2M (+$1M YoY), despite Wholesale Express revenue collapse (-91.4%).
- Powersports segment: Pre-owned gross margin improved to 18.8% vs 17% YoY; new unit gross margin 13.2% vs 12.3% YoY.
- Total gross profit per unit $5,264 (+1.9% YoY), driven by pre-owned mix shift.
- Cash flow from operations: $4M (6M period) vs $29M prior year, due to absence of finance receivable sale proceeds.

**【Q&A Highlights】**
- **Demand Environment**: CEO sees stabilization in pricing post-Big Beautiful Bill passage, with pre-owned strength and early signs of new unit recovery.
- **Wholesale Express Reset**: Testing B2C relocation business to diversify from traditional B2B auction model; rebuilding broker relationships proving challenging.
- **Liquidity**: $185.7M total liquidity (cash + floorplan availability), with reduced minimum liquidity requirement to $20M for Q3/Q4 2025.


RumbleOn, Inc. (RMBL) Q2 2025 Earnings Call Transcript

- **Revenue decline**: 18.5% YoY drop driven by 20.5% unit volume decline
- **Pre-owned strength**: 13.9% unit decline vs 23.7% new units, gross margin per unit +10.9%
- **Cost efficiency**: SG&A as % of gross profit improved 230bps to 85.6%
- **Wholesale Express turnaround**: New leadership in place, restructuring ongoing
- **Tariff impact**: OEMs absorbing costs, no consumer price increases yet
- **Liquidity strong**: $171M available, no immediate capital structure changes

**【CEO Opening Remarks】**
- Q1 2025 marked a period of 'rapid change and opportunity' amid 20.5% YoY decline in major unit sales.
- Highlighted progress on turnaround initiatives, including:
  - New leadership hires: CLO Melissa Bengtson, VP of Wholesale Express Fred Moseley
  - Ongoing search for CFO
  - Improved A EBITDA despite Wholesale Express underperformance
- Emphasized operational discipline: A EBITDA margin improved to 2.9% vs 2.3% last year

**【Financial Performance】**
- Total revenue: $244.7M (down 18.5% YoY)
- Powersports Group:
  - Pre-owned units down 13.9% vs 23.7% decline in new units
  - Gross margin per unit +10.9% to $1,688
  - Financing/insurance gross profit per unit +2.9%
- Wholesale Express: Revenue down 61.5%, gross profit down 68.6%
- Cash position: $56.2M; liquidity: $171.4M

**【Key Takeaways】**
- Pre-owned segment resilience: 13.9% unit decline vs 23.7% new units
- Cost control: SG&A as % of gross profit improved to 85.6% vs 87.9%
- Target long-term SG&A at 75% of gross profit
- Wholesale Express restructuring underway, expects 'sustainable long-term growth'
- Tariff impact: OEMs absorbing costs, no consumer pull-forward seen

**【Q&A Highlights】**
- Inventory strategy: 'Cash Offer' tool utilization tied to inventory quality
- Year-end inventory outlook: 'flat to slightly up' vs 2024 levels
- OEM partner response: Tariffs not yet impacting finished goods pricing
- Consumer behavior: No evidence of tariff-driven demand pull-forward

RumbleON (RMBL)-7 May 25-2025 Q1 Earnings call transcript

- **Strategic Shift**: New CEO prioritizes profitability over growth, with 2024 SG&A expenses down 22.9% YoY.
- **Inventory Cleanup**: Reduced new inventory by $80M+ in 2024, positioning for 2025 with 'appropriately sized' levels.
- **Financial Resilience**: Despite 13.4% YoY revenue decline, Q4 2024 adjusted EBITDA turned positive at $2.2M.
- **Tariff Risk**: 65% of sales tied to OEMs facing potential tariff headwinds, with uncertain consumer demand impact.
- **Wholesale Express Recovery**: Rebuilding brokerage business post-leadership turnover, targeting 2025 EBITDA positivity.

**【CEO Opening Remarks】**
- CEO Mike Quartieri emphasized the company's strategic pivot to focus on profitability and free cash flow generation, discontinuing the prior Vision 2026 plan.
- Key initiatives include:
  - Reducing new inventory by $80M+ in 2024, entering 2025 with 'appropriately sized' inventory levels.
  - Streamlining cost structure: 2024 adjusted SG&A expenses down 22.9% YoY to $62.3M (92.3% of gross profit).
  - Rebuilding the Wholesale Express brokerage business post-leadership turnover, targeting positive EBITDA in 2025.
- Highlighted challenges: 
  - 13.4% YoY revenue decline to $269.6M in Q4 2024.
  - Tariff uncertainty could impact OEM pricing strategies and consumer demand.

**【CFO Financial Highlights】**
- **Topline Performance**: 
  - Q4 2024 revenue: $269.6M (13.4% YoY decline).
  - Full-year 2024 revenue: $1.2B (11.5% YoY decline).
- **Profitability**: 
  - Q4 adjusted EBITDA: $2.2M (vs. slight loss in Q4 2023).
  - Full-year adjusted EBITDA: $32.9M (12% YoY decline).
- **Segment Breakdown**: 
  - Powersports Dealership Group: 
    - 14,100 units sold (9.3% YoY decline).
    - New unit gross margin: 10.8% (vs. 13.2% YoY).
    - Pre-owned gross margin: 9.8% (vs. -10.3% YoY due to prior-period inventory write-down).
  - Wholesale Express: 
    - Q4 revenue up 3.1% YoY, but gross profit down 2.9% to $3.3M.
- **Liquidity**: 
  - $96.7M cash on hand (including $30M capital raise).
  - Total available liquidity: $242.9M.
  - Repaid $38.8M convertible notes post-year end.

**【Q&A Key Takeaways】**
- **Tariff Impact**: 
  - Top OEMs (Polaris, BRP, Harley-Davidson) account for ~65% of sales.
  - Uncertainty around OEM pricing pass-through to consumers.
- **Inventory Management**: 
  - Confident in 2025 new inventory levels, but parts inventory still elevated.
  - Industry-wide promotional activity likely to continue pressuring margins.
- **Debt Optimization**: 
  - Engaged investment bank to explore debt refinancing.
  - No immediate guidance on 2025 financial targets.


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