0001596961-26-000015
SEC filingRideNow Group, Inc. reported a net loss of $52.4 million for fiscal year 2025, a significant deterioration from the prior year's results. Total revenue declined 10.5% to $1.08 billion, primarily driven by a $49.4 million decrease from the discontinued vehicle transportation services segment and lower powersports vehicle sales volume. Gross profit decreased 5.2% to $298.0 million, with the gross margin improving slightly to 27.5% from 26.0% in 2024. The company generated positive operating cash flow of $15.9 million despite the net loss, but experienced a net cash decrease of $53.8 million due to significant debt repayments. As of December 31, 2025, the company operated 48 powersports dealerships and had total available liquidity of $166.0 million, though stockholders' equity showed a deficit of $12.5 million.
RideNow Group reported challenging financial results for fiscal year 2025, with total revenue declining 10.5% to $1.08 billion from $1.21 billion in 2024. The company recorded a net loss of $52.4 million, compared to a net loss in the prior year. Gross profit decreased 5.2% to $298.0 million, though gross margin improved to 27.5% from 26.0% due to better gross profit per vehicle. Operating loss was minimal at $0.2 million. The company sold 61,894 powersports vehicles in 2025, down 4.8% from 64,988 vehicles in 2024. Same-store powersports revenue declined 4.6% to $1.03 billion, while same-store gross profit increased 2.8% to $283.9 million, indicating improved operational efficiency in continuing locations.
Revenue performance was mixed across segments. Powersports vehicle revenue declined 7.6% to $778.8 million, driven by 3,094 fewer vehicles sold. Within powersports, new retail vehicle revenue decreased 9.9% to $555.5 million, while pre-owned retail vehicle revenue increased 2.2% to $206.6 million. Parts, service and accessories revenue declined 4.1% to $197.8 million, and finance and insurance revenue decreased 5.0% to $97.3 million. The most significant decline came from vehicle transportation services, which ceased operations in December 2025, with revenue dropping 85.2% to $8.6 million. Same-store metrics showed better performance, with same-store powersports revenue declining only 4.6% to $1.03 billion, and same-store pre-owned retail vehicle revenue increasing 6.3% to $199.4 million.
Gross margin improved to 27.5% in 2025 from 26.0% in 2024, despite the revenue decline. Total gross profit per retail vehicle increased 5.1% to $5,208. Within powersports, gross profit per new retail vehicle increased 11.2% to $1,896, while gross profit per pre-owned retail vehicle increased 4.2% to $1,852. Selling, general and administrative expenses decreased 6.9% to $256.3 million, representing 86.0% of gross profit compared to 87.6% in 2024. The company recorded a $34.8 million impairment of intangible assets related to franchise rights. Other interest expense, net was $41.5 million, primarily from the term loan facility. The effective tax rate was -0.6% due to valuation allowance impacts.
Operating activities generated $15.9 million in cash flow, a significant decrease from $99.4 million in 2024. Investing activities used $2.7 million, primarily for property and equipment purchases. Financing activities used $67.0 million, mainly for debt repayments of $61.1 million. The net decrease in cash and restricted cash was $53.8 million. As of December 31, 2025, total assets were $673.6 million, with current assets of $334.7 million including inventory of $257.4 million. Total liabilities were $686.1 million, resulting in stockholders' equity deficit of $12.5 million. Total debt, net was $426.0 million, including floor plan lines of credit of $218.4 million and term loan facility of $207.7 million. Available liquidity was $166.0 million, comprising cash and restricted cash of $42.9 million and availability under floor plan lines of credit of $123.1 million.
The company faces several challenges including material weaknesses in internal control over financial reporting that have not been fully remediated. Management believes current working capital, results of operations, and existing financing arrangements are sufficient to fund operations for at least twelve months. The company will need to refinance its term loan facility due primarily in September 2027, with requirements to commence refinancing by September 2026. Strategic priorities include focusing on the powersports dealership business after discontinuing vehicle transportation services, implementing cost control initiatives through the 'RideNow Way' efficiency program, and pursuing measured growth through strategic acquisitions. The powersports industry remains seasonal with strongest sales in spring and summer quarters. Key risks include inventory acquisition challenges, dependence on key personnel, competitive pressures, and regulatory compliance requirements.