RideNow Group reports higher same-store sales, adjusted EBITDA in Q2

RideNow Group reported improved same-store sales and profitability in the second quarter of 2026, as operational improvements, cost controls, and stronger new-unit margins helped offset lower overall revenue and unit sales following dealership consolidations.

The Chandler, Arizona-based powersports dealership group reported second-quarter same-store revenue of $291.5 million, up 3% from $282.9 million a year earlier. Adjusted EBITDA increased 19.2% to $20.5 million, compared with $17.2 million in the second quarter of 2025.

Total revenue declined slightly to $296.8 million from $299.9 million a year earlier. Management attributed the decline primarily to store consolidation efforts, noting that RideNow operated five fewer stores than it did during the prior-year quarter.

RideNow sold 16,626 units during the quarter, a 2.9% decline from the same period last year. New retail unit sales increased 1.8% to 10,807 units, while pre-owned retail sales fell 6.8% to 4,924 units.

Gross profit increased to $84.8 million, while same-store gross profit rose 2% to $83 million. New-unit gross margin improved to 14.8%, compared with 13.2% a year earlier. Pre-owned gross margin declined to 18% from 18.8%.

The company’s focus on expense control also contributed to the improved profitability. Adjusted selling, general and administrative expenses fell to $62.8 million from $64.9 million, with adjusted SG&A representing 74.1% of gross profit versus 77.4% in the prior-year quarter.

RideNow’s fixed operations business, including parts, service and accessories, generated $50.1 million in revenue and $24.2 million in gross profit. Finance and insurance revenue was $27 million, compared with $27.2 million a year earlier.

For the first six months of 2026, RideNow reported revenue of $557.2 million, up from $544.6 million during the first half of 2025. Gross profit increased to $156.4 million from $151.1 million, while adjusted EBITDA rose to $29.8 million from $23.2 million.

Financing promotions supporting demand

During the company’s earnings call, CEO and President Michael Quartieri said consumer demand remained relatively consistent during the quarter, with manufacturer financing promotions having a greater impact on purchasing decisions than direct rebates.

Approximately 65% of RideNow customers finance their purchases, making promotional financing offers such as 0% or low-interest-rate programs an important factor in sales activity, management said.

RideNow reported a solid year-over-year sales trend in June, although early third-quarter same-store sales were down by a low-single-digit percentage. Quartieri attributed the near-term softness to continued market volatility and said the company is concentrating on operational factors within its control.

Management also said it has not seen a material deterioration in customer credit metrics during 2026, including applicant credit scores and default rates.

Used inventory remains competitive

RideNow ended the quarter with inventory levels in the low four-month range, which CFO Josh Barsetti described as the company’s preferred level. New inventory was somewhat above that range, while used inventory was somewhat below it.

Quartieri said the used-vehicle market remains competitive because of competition among dealerships and continued growth in private-party sales.

RideNow continues to use its RideNow Cash Offer tool, trade-ins, service visits and digital marketing campaigns to acquire pre-owned inventory. Vehicles that do not fit the company’s retail strategy can be sent to auction, management said.

Refinancing takes priority

RideNow ended the quarter with $63.1 million in cash, including restricted cash, and total available liquidity of $158.2 million when cash and floor-plan availability were combined.

The company also secured a new $20 million used-vehicle floor-plan facility that will replace an existing related-party floor-plan line expected to wind down in August. Additional floor-plan availability was also added for new products.

Short-term revolving floor-plan credit availability totaled approximately $95.1 million at quarter-end, while non-vehicle net debt stood at $174.4 million.

RideNow used $28.2 million in operating cash flow during the first six months of the year. Adjusted free cash flow was $20.8 million for the period, compared with $2.9 million a year earlier.

Quartieri said completing the company’s refinancing is the immediate priority. Once that process is completed, RideNow expects to resume pursuing dealership acquisitions.

Management said potential future acquisitions could include tuck-in purchases of single-point dealerships within RideNow’s existing markets as well as opportunities to enter new markets. Quartieri described acquisitions as a long-term component of the company’s growth strategy.

RideNow said it remains focused on generating adjusted EBITDA and free cash flow through the remainder of 2026 while continuing its operational improvement efforts.