RDNW · RideNow Group, Inc.

RideNow Group’s Q1 2026 results reflect broad-based operational improvement across core powersports retail metrics. Revenue growth was underpinned by strong unit volume — new retail units rose 16.3% and pre-owned units increased 6.6% — while same-store revenue growth of 13.1% confirms the effectiveness of store-level execution, not just acquisition-driven expansion. Gross profit expanded faster than revenue (8.3% vs. 6.4%), suggesting favorable product mix and pricing power, particularly in new retail vehicles (+17.8% gross profit) and parts/services (+5.8%). SG&A efficiency improved meaningfully: absolute growth was modest (+1.6%), but SG&A as a percentage of gross profit fell from 90.9% to 86.7%, indicating disciplined cost management. The $5.4 million reduction in net loss — from $9.7 million to $4.3 million — and 32.9% growth in Adjusted EBITDA highlight improving operating leverage. However, operating cash flow deteriorated sharply to -$27.6 million, largely attributable to a $45.1 million increase in inventory (from $257.4M to $302.5M), reflecting strategic inventory build ahead of seasonal demand and potential supply constraints. Management attributed the performance to 'tactical near-term initiatives' and 'structural changes' aimed at long-term value creation, citing 'unrelenting focus on execution' — though no forward guidance was provided. Liquidity remains solid ($145.7M total), mitigating near-term financial risk despite elevated debt levels.