RideNow Group (NASDAQ:RDNW) Releases Earnings Results

RideNow Group (NASDAQ:RDNW) announced its earnings results on Monday. The company reported ($0.17) EPS for the quarter, FiscalAI reports. RideNow Group had a negative net margin of 4.84% and a negative return on equity of 360.78%. The company had revenue of $256.90 million for the quarter.

Here are the key takeaways from RideNow Group’s conference call:

• Adjusted EBITDA jumped to $9.7 million in Q4 (up 341% YoY) and full‑year adjusted EBITDA was $46.2 million (up 40.4% YoY), driven by cost reductions and operational execution.
• Management shut down Wholesale Express effective end of December, removing the transportation business and reducing total revenue year‑over‑year.
• On a same‑store basis (excluding closed locations), Q4 powersports revenue rose 6.3%, gross profit increased 13.8%, and unit sales grew, marking multi‑quarter same‑store improvement.
• Profitability per unit improved — new unit gross margin to 13.2% (from 10.8%) and pre‑owned to 14.4%, with higher GPU in fixed ops and F&I businesses.
• Liquidity shows $42.9M cash and total available liquidity of ~$152.6M, but non‑vehicle net debt is $189.3M and free cash flow fell to $10.3M for 2025 (vs. $97.4M prior year), reflecting one‑time items and weaker operating cash conversion.

RideNow Group Stock Down 7.3%

Shares of RideNow Group stock opened at $6.21 on Wednesday. The stock has a market capitalization of $236.10 million, a P/E ratio of -4.47 and a beta of 1.26. RideNow Group has a 12-month low of $1.46 and a 12-month high of $7.17. The company has a 50-day simple moving average of $5.98 and a 200 day simple moving average of $4.94.

Analyst Upgrades and Downgrades

Several research firms recently commented on RDNW. Robert W. Baird raised their price target on shares of RideNow Group from $5.00 to $7.00 and gave the stock a “neutral” rating in a report on Tuesday. DA Davidson reaffirmed a “neutral” rating and issued a $6.00 target price on shares of RideNow Group in a research report on Tuesday. Wall Street Zen upgraded RideNow Group to a “buy” rating in a report on Saturday, January 10th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of RideNow Group in a research note on Thursday, January 22nd. One research analyst has rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Hold” and an average price target of $6.00.

Institutional Investors Weigh In On RideNow Group

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RDNW. Union Square Park Capital Management LLC bought a new stake in shares of RideNow Group during the fourth quarter valued at approximately $8,763,000. Geode Capital Management LLC acquired a new stake in RideNow Group in the fourth quarter worth about $1,477,000. Deutsche Bank AG acquired a new position in RideNow Group during the 4th quarter valued at about $1,004,000. Millennium Management LLC acquired a new position in RideNow Group during the 4th quarter valued at about $927,000. Finally, First Financial Bankshares Inc acquired a new stake in shares of RideNow Group during the 4th quarter worth approximately $554,000. Institutional investors and hedge funds own 66.14% of the company’s stock.

RideNow Group Company Profile

RideNow Group, Inc (NASDAQ: RDNW) is a leading U.S. retailer of powersports vehicles, offering both new and pre-owned inventory to enthusiasts and recreational riders. The company’s dealerships carry a diverse lineup of motorcycles, all-terrain vehicles (ATVs), side-by-sides, personal watercraft and snowmobiles from major manufacturers. In addition to vehicle sales, RideNow Group provides comprehensive service and maintenance, aftermarket parts and accessories and a range of financing and protection plans tailored to powersports customers.

Founded in 2004 and headquartered in Houston, Texas, RideNow Group has grown through a combination of organic expansion and strategic acquisitions.