RideNow Group (RDNW) Q2 2026 earnings summary

Executive summary

• Q2 2026 same-store revenue reached $291.5 million, up 3% year-over-year, with adjusted EBITDA rising 19.2% to $20.5 million, and net income rebounding to $6.5 million from a prior year net loss of $32.2 million, reflecting operational momentum and strategic execution.

• Store consolidation and exit from transportation services led to five fewer stores, impacting total revenue but improving profitability and focus on powersports dealership operations.

• Key milestones included addition to the Russell 2000 Index, securing a $20 million used floor plan facility, and relocating two Florida stores to upgraded facilities.

• Navigated a challenging macroeconomic environment with persistent inflation, fluctuating interest rates, and new federal tariff structures, but expects minimal impact from tariffs due to OEM agreements.

• Same store metrics are now emphasized due to the closure or sale of underperforming stores in 2025.

Financial highlights

• Total Q2 2026 revenue was $296.8 million, down from $299.9 million year-over-year due to store closures and the wind-down of transportation services.

• Net income for Q2 2026 was $6.5 million, compared to a net loss of $32.2 million in Q2 2025, driven by the absence of a $34 million franchise rights impairment recorded last year.

• Adjusted EBITDA increased 19.2% to $20.5 million; adjusted SG&A expenses fell 3.3% to $62.8 million.

• Gross profit for Q2 was $84.8 million, up $1.1 million year-over-year; new unit gross margin improved to 14.8%.

• For the first half of 2026, revenue was $557.2 million, gross profit $156.4 million, and adjusted free cash flow $20.8 million.

Outlook and guidance

• Expectation to maintain strong adjusted EBITDA and free cash flow for the remainder of 2026, with plans to pursue highly accretive acquisitions as a key pillar of long-term growth, pending completion of refinancing.

• Management expects continued resilience in premium segments but notes that broader consumer demand is sensitive to interest rates and macroeconomic uncertainty.

• Current liquidity and cash flow are expected to be sufficient for at least the next twelve months, but refinancing of the Credit Agreement is required by November 30, 2026.

• No material impact from recent tariff changes is anticipated, but ongoing monitoring of OEM pricing and consumer demand continues.

• Management remains committed to the "back to our roots" strategy, focusing on sustained profitable growth and long-term shareholder value.