RideNow's Same-Store Growth Cools After a First-Quarter Spike
Same-store powersports revenue rose 3.0% to $291.5 million in the three months ended June 30, 2026, after a 13.1% year-over-year increase in the first quarter.
RideNow Group, Inc. (RDNW), a powersports dealership group that describes itself as the largest powersports retail group in the United States, reported that same-store powersports revenue rose 3.0% to $291.5 million in the three months ended June 30, 2026, a slower year-over-year pace than the 13.1% same-store increase it posted in the first quarter.
Same-store powersports unit sales rose 1.7% to 16,240 units, versus a 16.3% same-store unit increase in the first quarter. Chairman, Chief Executive Officer and President Michael Quartieri said the company remained committed to driving sustained profitable growth and delivering long-term value for shareholders, and that performance gains over the last year showed the “back to our roots” strategy was on the right trajectory.
Total revenue was $296.8 million, down 1.0% from $299.9 million a year earlier. The company attributed the decline primarily to its store consolidation effort and to former transportation services that ceased operations at the end of December 2025. Powersports revenue was $296.8 million, down 0.6% from $298.6 million, after a 6.4% year-over-year increase in the first quarter. Vehicle transportation services revenue was zero in the second quarter of 2026 versus $1.3 million in the year-ago quarter.
New retail vehicle revenue was $156.6 million, with new retail units of 10,807. Pre-owned retail vehicle revenue was $57.1 million, with pre-owned retail units of 4,924. Wholesale vehicle revenue was $6.0 million, while wholesale units fell 26.4% to 895. Parts, services, and accessories revenue was $50.1 million. Finance and insurance, net, was $27.0 million.
Total gross profit was $84.8 million, up 1.1% from $83.9 million, after a 6.5% year-over-year increase in the first quarter. New retail vehicle gross profit was $23.1 million. Pre-owned retail vehicle gross profit was $10.3 million. Powersports gross profit per unit rose 2.4% to $5,390.6.
Selling, general and administrative expenses were $65.0 million, or 76.7% of gross profit, compared with $66.7 million, or 79.5% of gross profit, a lower ratio than the 86.7% of gross profit reported in the first quarter. Adjusted SG&A was $62.8 million, or 74.1% of gross profit.
Operating income was $17.9 million versus an operating loss of $18.8 million, which included a $34.0 million franchise rights impairment charge in the year-ago quarter. Net income was $6.5 million, or $0.16 a share diluted, versus a net loss of $32.2 million, or $0.85 a share, in the year-ago quarter. Adjusted EBITDA increased 19.2% to $20.5 million from $17.2 million, after a 32.9% year-over-year increase in the first quarter.
Unrestricted cash was $46.7 million at June 30, 2026. Non-vehicle net debt was $174.4 million. Total available liquidity was $158.2 million as of June 30, 2026, including $63.1 million of total cash and about $95.1 million of availability under powersports floor plan lines. Consolidated total net leverage was 3.2 times, against a covenant maximum of 6.25 times.
For the six months ended June 30, 2026, cash outflows from operating activities were $27.7 million, compared with inflows of $4.0 million for the same period in 2025. The company began presenting Adjusted Free Cash Flow for the period ended June 30, 2026, defining it as GAAP operating cash flow adjusted for non-trade floor plan proceeds and acquisitions or dispositions, less property and equipment purchases. Adjusted Free Cash Flow was $20.8 million.