RideNow Group (RDNW) Q2 FY26 earnings call: the analyst Q&A

Earnings call· Jun 2026 (Q2 FY26)· Consumer Discretionary· Aug 11, 2026

Source: earnings call transcript

Executive summary

RideNow Group Q2 FY26 — Strong Operational Momentum and Refinancing Progress

RideNow Group continued its turnaround momentum in Q2 FY26, driven by operational improvements and cost efficiencies. The company reported strong same-store revenue and adjusted EBIT growth, alongside significant progress in refinancing efforts and strategic store relocations. Management remains focused on internal controls and disciplined capital deployment, with future growth expected through accretive acquisitions post-refinancing.

Highlights

Q2 FY26 same store revenue increased 3% year-over-year to $291.7 million.
Adjusted EBIT rose 19.2% year-over-year to $20.5 million in Q2 FY26.
Adjusted SG&A expenses improved to 74.1% of gross profit in Q2 FY26, down from 77.4% in Q2 FY25.
New retail unit sales increased 1.8% year-over-year to 10,807 units in Q2 FY26.
Adjusted free cash flow for H1 FY26 was $20.8 million, significantly up from $2.9 million in H1 FY25.

Concerns

Total revenue decreased to $296.8 million in Q2 FY26 from $299.9 million in Q2 FY25, predominantly due to operating five fewer stores.
Total units sold decreased 2.9% year-over-year to 16,626 units in Q2 FY26.
Pre-owned retail units decreased 6.8% year-over-year to 4,924 units in Q2 FY26.
Pre-owned gross margins decreased from 18.8% in Q2 FY25 to 18% in Q2 FY26.
Same store sales are down slightly in the low single digits early in Q3 FY26.

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Fixed Operations (Parts, Service, Accessories) Delivered $50.1 million in revenue and $24.2 million in gross profit during Q2 FY26.	$50.1 million	—	—	$24.2 million
Finance and Insurance Delivered $27 million in revenue in Q2 FY26, down $0.2 million compared to $27.2 million in the prior year's quarter.	$27 million	down $0.2 million	—	—

Deals & partnerships

Russell 2000 index Addition to the Russell 2000 index

RideNow Group was added to the Russell 2000 index during the quarter.

Undisclosed lender Secured new used floor plan facility $20 million

Secured a new $20 million used floor plan facility, which will replace the existing related party floor plan line winding down this month.

Undisclosed lenders Expanded floor plan capacity for new products

Expanded floor plan capacity for new products.

Undisclosed Refinancing efforts

Made substantial progress on refinancing efforts, with more details to be shared in the near future. This is a major focus before pursuing M&A.

Risks & headwinds

Same store sales decline in early Q3 FY26 early Q3 FY26

down slightly in the low single digits YoY

Mitigation:Focus on internal operational controls; management notes volatility can change to the upside as well.

Competitive environment for used inventory Ongoing

Continued growth in private sales

Mitigation:Utilizing cash offer tool, acquiring inventory through trade-ins, expanding digital marketing capabilities to hone in on acquisition opportunities.

Macroeconomic volatility Ongoing

Not quantified, but acknowledged as 'disturbance' in the market

Mitigation:Focusing on controllable aspects within the four walls of operations.

What to watch in Q3 FY26

Refinancing completion

Coming weeks

Current Substantial progress made

Target Completion announced

Why it matters

Completion of refinancing is a major focus and prerequisite for turning on the M&A engine and pursuing growth through acquisitions.

Our major focus right now is getting the refinancing completed, which I said we'll have more news to share in the coming weeks.

Find out whether RDNW delivers this. Inve re-checks your case every morning.

Q&A highlights

What trends are observed in customer preference between new and pre-owned vehicles, and how does this relate to inventory levels and competition in the pre-owned market?

Customer behavior is consistent, largely driven by OEM financing offers (0% or low interest rates). Inventory is comfortable at a low four-month range. The pre-owned market is competitive, but the company acquires inventory through trade-ins and digital marketing, not just wholesale.

“what we've typically seen and experienced is something around the 0% financing or a very low interest rate is driving competition. consumer behavior as 65% of our customers are financing their units.”

asked by Eric Wood · answered by Unknown Speaker

2 min read 5 chapters

Detailed narrative

Operational Turnaround and Strategic Initiatives

RideNow Group is in the early innings of its turnaround, focusing on near-term operational improvements and structural changes. Key initiatives include securing the right leadership, maintaining cost efficiency, and reinstating operational rigor across all stores. These efforts are aimed at driving positive momentum and creating sustained shareholder value, positioning the company for greater operating leverage.

Key Milestones and Financial Strength

During Q2 FY26, RideNow achieved several milestones, including being added to the Russell 2000 index and securing a new $20 million used floor plan facility, alongside expanded capacity for new products. The company also completed the relocation of its Tallahassee and Gainesville, Florida stores into upgraded facilities. These achievements are seen as direct testaments to the company's operational momentum and improved financial strength.

Refinancing Efforts and Future Growth Strategy

Substantial progress has been made on refinancing efforts, with more details expected in the near future. Once completed, the company plans to pursue highly accretive acquisitions as a key pillar of its long-term value strategy. The M&A landscape is being evaluated for potential tuck-in acquisitions to expand existing footprints or entry into new markets.

Consumer Behavior and Inventory Management

Consumer behavior is primarily driven by OEM financing offers, particularly 0% or low-interest rates, as 65% of customers finance their units. The company maintains a comfortable inventory level in the low four-month range, with new inventory slightly higher and used slightly lower. RideNow utilizes its cash offer tool and trade-ins, enhanced by digital marketing, to acquire desired used inventory despite a competitive environment.

Credit Trends and Macro Volatility

Management reported no significant changes in credit trends, including credit scores of applicants or default rates, throughout the 2026 period. While acknowledging market volatility, the company emphasizes focusing on controllable aspects within its operations. Early Q3 FY26 same-store sales are noted to be down slightly in the low single digits, but this is viewed as potentially temporary.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.