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    RDNW
    Earnings call· Jun 2026(Q2 FY26)

    RideNow Group Q2 FY26 earnings call RDNW

    Aug 11, 2026 Source

    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

    5

    • 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

    5

    • 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

    2
    SegmentRevenueYoYQoQMargin
    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 milliondown $0.2 million——

    Operational metrics

    20
    Adjusted EBIT
    $20.5 million19.2% increase YoY
    Q2 FY26
    Adjusted EBITDA
    $20.5 million19.2% increase YoY
    Q2 FY26

    Up from $17.2 million in Q2 FY25.

    Adjusted EBITDA
    $29.8 millionUp $6.6 million YoY
    H1 FY26

    Up from $23.2 million in H1 FY25.

    Total Revenue
    $296.8 millionDown from $299.9 million YoY
    Q2 FY26

    Decrease predominantly driven by operating five fewer stores.

    Total Revenue
    $557.2 millionUp $12.6 million YoY
    H1 FY26

    Up from $544.6 million in H1 FY25.

    Gross Profit
    $84.8 millionUp $1.1 million YoY
    Q2 FY26
    Gross Profit
    $156.4 millionUp from $151.1 million YoY
    H1 FY26
    Total Units Sold
    16,626Down 491 units or 2.9% YoY
    Q2 FY26
    New Retail Unit Sales
    10,807Up 189 units or 1.8% YoY
    Q2 FY26
    Pre-owned Retail Units
    4,924Down 359 units or 6.8% YoY
    Q2 FY26
    New Unit Gross Margins
    14.8%Up from 13.2% YoY
    Q2 FY26
    Pre-owned Gross Margins
    18%Down from 18.8% YoY
    Q2 FY26
    Total Cash (inclusive of restricted cash)
    $63.1 million
    Q2 FY26 end
    Availability under Short-Term Revolving Floor Plan Credit Facilities
    $95.1 million
    Q2 FY26 end
    Total Available Liquidity
    $158.2 million
    Q2 FY26 end

    Defined as total cash plus availability under floor plan credit facilities.

    Non-Vehicle Net Debt
    $174.4 million
    Q2 FY26 end
    Cash Outflows from Operating Activities
    $28.2 million
    H1 FY26
    Stores Operating
    5 fewerYoY
    Q2 FY26

    Compared to the prior year quarter, due to store consolidation efforts.

    Customer Financing Rate
    65%
    Q2 FY26

    65% of customers are financing their units.

    Inventory On Hand
    low four-month range
    Q2 FY26 end

    Company is comfortable with current inventory levels.

    Industry KPIs

    7
    MetricValueDetails
    Sg a OPEX ratio74.1%%
    Comparable sales$291.7 millionUSD
    Store count growth5 fewerstores
    Gross margin drivers$84.8 millionUSD
    Net debt to adjusted EBITDA$174.4 millionUSD
    Share buyback capital return—
    Inventory position markdown risklow four-month range

    Deals & partnerships

    4
    Russell 2000 indexAddition to the Russell 2000 index

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

    Undisclosed lenderSecured 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 lendersExpanded floor plan capacity for new products

    Expanded floor plan capacity for new products.

    UndisclosedRefinancing 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

    3
    Same store sales decline in early Q3 FY26early 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 inventoryOngoing

    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 volatilityOngoing

    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

    3

    Refinancing completion

    Coming weeks
    CurrentSubstantial progress made
    TargetCompletion 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.

    Q&A highlights

    4

    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 read5 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.