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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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

RDNW

RDNW fundamentals

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