RideNow's Same-Store Sales Reverse After Clear Price Rollout

The Tip Desk · November 10, 2026 · 3 min read

Third-quarter revenue was $244.3 million, down 13.1%, as adjusted EBITDA fell to $5.3 million and the company reported a larger net loss.

RideNow Group, Inc. (RDNW), a U.S. powersports dealership group, reported third-quarter revenue of $244.3 million, down 13.1% from a year earlier, as unit volume fell and the company rolled out a new transparent-pricing model in August.

Same-store Powersports Revenue reversed a 3.0% year-over-year gain in the second quarter, falling 7.9% to $241.4 million. Total revenue had also declined 1.0% in the second quarter. The company said the same-store drop was due to lower unit sales, largely from a reduction in consumer discretionary spending and the initial market implementation of the Clear Price model, which it introduced to align with Federal Trade Commission guidance on vehicle pricing and fee transparency.

Chairman, Chief Executive Officer and President Michael Quartieri said the contraction was primarily driven by the company-wide rollout of the RideNow Clear Price strategy and that the August rollout impacted retail volume against non-compliant competitors during the quarter.

New powersports retail units fell to 8,127 from 9,904 a year earlier. Pre-owned retail units were 4,055. Total retail units were 12,182. Wholesale units were 704. New retail vehicle revenue was $125.6 million, pre-owned retail vehicle revenue was $45.5 million, and finance and insurance, net, was $21.7 million. Parts, service and accessories revenue was $47.1 million.

Gross profit was $65.5 million, down 13.8%. Selling, general and administrative expenses were $59.6 million, down $4.8 million from $64.4 million a year earlier. Operating income was $4.2 million. Adjusted EBITDA decreased to $5.3 million from $12.3 million.

The company reported a larger net loss of $13.9 million, or $0.36 a share, from a $4.1 million net loss, or $0.11 a share, a year earlier. The quarter included a $5.7 million loss on debt extinguishment tied to the term-loan refinancing.

Quartieri said the company reduced costs by $4.6 million on an annualized basis during the quarter and expects an incremental $10 million of run-rate cost savings as it exits 2027. He said the company is already seeing a rebound in the fourth quarter as consumer awareness grows and expects fourth-quarter Adjusted EBITDA to outpace the third quarter, bucking the typical seasonal trend.

RideNow refinanced its senior secured term loan with a new $220.0 million facility maturing in September 2031 and entered advanced discussions for a $50.0 million senior secured asset-based revolving credit facility. It completed a tuck-in acquisition of a dealership in Tallahassee, Florida.

Unrestricted cash was $29.2 million at September 30, 2026. Non-vehicle net debt was $203.7 million. Total cash, including restricted cash, was $47.6 million. Availability under powersports floorplan lines of credit was about $101.8 million, and total available liquidity was $149.4 million.

For the nine months ended September 30, 2026, cash outflows from operating activities were $41.7 million, compared with inflows of $15.5 million a year earlier. Adjusted free cash flow was $14.2 million.