RideNow’s powersports segment returns to growth in Q3 2025

RideNow Group, Inc. reported strong third-quarter results as its powersports business returned to growth, offsetting declines in the company’s transportation services segment.

For the quarter ended Sept. 30, 2025, RideNow’s powersports gross profit rose 6.9% on higher new and pre-owned unit sales, while adjusted EBITDA jumped 81% year-over-year to $12.3 million. The company’s net loss narrowed sharply to $4.1 million, compared to an $11.2 million loss in Q3 2024.

“Our ‘back to our roots’ strategy is driving improved results,” says Chairman and CEO Michael Quartieri. “We see a clear path for continued improvement, sustained growth, and value creation.”

Powersports segment highlights

• Retail unit sales: 14,605 (+2.2% y/y)
• New unit sales: 9,904 (+1.7%)
• Pre-owned unit sales: 4,701 (+3.3%)
• Total powersports revenue: ≈ $280.0 million (flat vs prior year)
• Gross profit for powersports: $75.7 million (+6.9%)
• Gross profit per retail unit (GPU): $5,183 (+4.6%)
• Parts, service & accessories revenue: $50.8 million (+3.3%)
• Finance & insurance income: $24.9 million (+2.5%)

The company’s vehicle transportation business experienced a significant decline, with revenue falling ~93% to $1 million as demand shifted away.

Cost control

The company reduced selling, general and administrative expenses (SG&A) by 2.3% to $64.4 million, or 80.9% of gross profit on an adjusted basis. Operating income rose 77% to $9.4 million.
RideNow ended the quarter with $51.8 million in total cash and $184.9 million in non-vehicle net debt. Available liquidity (cash + floor-plan credit) stood at approximately $182.9 million. The company also extended its term-debt maturity to 2027 and secured a 50-basis-point interest reduction, cutting annual interest cash expenses by approximately US$3.4 million.

Strategic moves

In August 2025, RideNow completed its rebranding and officially changed its ticker to RDNW. As part of this initiative, the company relocated its corporate headquarters from Irving, Texas to Chandler, Arizona, co-located with its flagship RideNow retail store.

The move was positioned as a step toward greater operational alignment, bringing corporate leadership and support functions closer to front-line store operations under a “one team” model.

Additionally, the company is undertaking a store-portfolio review and consolidation strategy. Management highlighted that two smaller stores in the Fort Worth, Texas market were merged into a larger “multi-brand destination” location (its 15th such store) during Q3, and that a pre-owned-only store in Houston is being shut down.

According to the transcript, CEO Quartieri noted:

“Our primary opportunity is around exiting or consolidating consistently unprofitable or smaller locations into larger existing locations … These larger multi-brand stores are true destinations for our customers, which we refer to internally as our aircraft carriers.”

Key points

• For dealers and OEM partners, the focus is increasingly shifting to large, multi-brand destination stores rather than numerous smaller specialty sites, suggesting that consolidation and scale are a priority.
• The HQ relocation signals that RideNow is centralizing its support and aiming to improve the consistency of the customer experience and operational execution across its network.
• With improved margins and EBITDA in the core powersports segment, RideNow appears to be stabilizing and repositioning itself, potentially offering a more predictable partner footprint for OEMs and service providers.

Outlook

CEO Quartieri said the momentum seen in Q2 accelerated into Q3, and with the strategic realignment now in place, RideNow is setting the stage for “sustained growth and value creation.”