RideNow Group reports improving Q4 margins as used unit sales rise
RideNow Group Inc. reported improving profitability and same-store growth in the fourth quarter of 2025, even as full-year revenue and new unit sales declined amid a softer powersports retail environment.
The dealership group said same-store revenue rose 6.3% in the fourth quarter, driven by a 7.7% increase in unit sales, while gross profit in the powersports segment climbed 10.1% to $70.7 million.
Chairman, CEO and President Michael Quartieri said the results reflect progress in the company’s operational turnaround.
“I am proud of our team and the substantial progress we have made on our ‘back to our roots’ strategy, with momentum building through the fourth quarter,” Quartieri says.
Fourth-quarter performance
For the fourth quarter ended Dec. 31, RideNow reported:
- Total revenue: $256.9 million, down 4.7% year-over-year
- Powersports revenue: $256.1 million
- Gross profit: $70.9 million, up 5%
- Adjusted EBITDA: $9.7 million, up from $2.2 million
- Net loss: $6.4 million, compared with a $56.4 million loss in Q4 2024
New retail powersports unit sales declined 2.9% to 9,924 units, while pre-owned unit sales increased 5.1% to 4,125 units.
The company said improved gross profit per unit (GPU) helped offset the decline in new unit volume. Powersports GPU rose 10.8% to $5,032 during the quarter.
Same-store retail performance was stronger:
- New unit sales: up 5.4%
- Pre-owned unit sales: up 10.4%
- Total same-store retail units: up 6.8%
Parts, service and accessories revenue also increased 2.8% to $48.5 million, while finance and insurance revenue rose 6.6% to $24.1 million.
Full-year results
For the full year, RideNow reported $1.08 billion in total revenue, down 10.5% from 2024, reflecting weaker industry demand.
Key full-year results included:
- Powersports revenue: $1.07 billion, down 6.7%
- Gross profit: $298 million, down 5.2%
- Adjusted EBITDA: $46.2 million, up 40.4%
- Net loss: $52.4 million, improved from a $78.6 million loss in 2024
New retail powersports unit sales fell 9.4% to 38,459 units, while pre-owned unit sales increased slightly to 18,416 units. While selling, general and administrative expenses declined 6.9% to $256.3 million, reflecting cost-cutting efforts.
Strategic changes
RideNow also exited its vehicle transportation services business at the end of 2025, which resulted in a non-cash impairment charge during the year. The company said the move aligns with its renewed focus on core dealership operations.
Balance sheet and inventory
At the end of 2025, RideNow reported:
- Cash: $29.5 million
- Long-term debt: $207.6 million
- Operating cash flow: $15.9 million
Inventory increased $16.8 million during the year, while the company repaid $61.1 million in debt principal. RideNow also reported $123.1 million in availability under its powersports floorplan credit lines, giving the company continued access to inventory financing.
Key takeaways
The results highlight several broader trends impacting powersports dealerships:
- Used units remain a strong profit driver as pre-owned sales continue to rise.
- Gross profit per unit is improving despite softer overall demand.
- Parts, service and F&I remain stable revenue contributors.
- Cost discipline is becoming a major focus for large dealership groups.
RideNow operates one of the largest powersports dealership networks in the United States, representing major brands across motorcycles, ATVs, side-by-sides, personal watercraft and snowmobiles.
