1. RumbleOn's Q1 2025 revenue dropped by 20.5% year-over-year. 2. Gross profit decreased by 18.6%, impacting financial health. 3. Net loss improved slightly, down 5.8% from Q1 2024. 4. Operating cash flow significantly declined, turning negative at -$6.9 million. 5. Powersports unit sales dropped sharply, indicating market challenges.
The significant decline in revenue and profit margins suggests ongoing structural weaknesses, which could lead to lower investor confidence. Historical context shows that substantial revenue declines typically correlate with negative stock performance.
The drop in key financial metrics may significantly impact investor sentiment and stock price; however, slight improvement in net loss offers hope.
Immediate market reaction is likely due to disappointing Q1 results; sentiment may not improve unless corrective measures are evident.
IRVING, Texas, May 7, 2025 /PRNewswire/ -- RumbleOn, Inc. (NASDAQ: RMBL), the "Company" or "RumbleOn", today announced results for the first quarter ended March 31, 2025.
"I am proud of the results the team delivered amidst a challenging backdrop for consumers. Although we experienced a year-over-year volume decline in our powersports segment, the team is making progress on our turnaround initiatives, and we are looking forward to building on this momentum," stated Michael Quartieri, RumbleOn's Chairman, Chief Executive Officer, and Interim Chief Financial Officer.
| First Quarter | 2025 | 2024 | YOY Change |
|---|---|---|---|
| Revenue | $ 244.7 | $ 307.8 | (20.5) % |
| Gross Profit | $ 67.2 | $ 82.6 | (18.6) % |
| SG&A | $ 61.1 | $ 73.9 | (17.3) % |
| Adjusted SG&A(1) | $ 57.5 | $ 72.6 | (20.8) % |
| Operating Income | $ 3.8 | $ 5.2 | (26.9) % |
| Net Loss | $ (9.7) | $ (10.3) | 5.8 % |
| Adjusted EBITDA(1) | $ 7.0 | $ 7.7 | (9.1) % |
| Type | 2025 | 2024 | YOY Change |
|---|---|---|---|
| New Powersports | 8,013 | 10,503 | (23.7) % |
| Pre-owned Powersports | 4,307 | 5,005 | (13.9) % |
| Metric | 2025 | 2024 | YOY Change |
|---|---|---|---|
| Operating Cash Flow | $ (6.9) | $ 17.0 | (140.6) % |
| Capital Expenditures | $ (0.5) | $ (0.6) | 16.7 % |
| Free Cash Flow(1) | $ (7.4) | $ 16.4 | (145.1) % |
The Company ended the quarter with $56.2 million in total cash, inclusive of restricted cash, and $188.2 million of non-vehicle net debt. Availability under the Company's powersports short-term revolving floor plan lines of credit totaled approximately $115.2 million as of March 31, 2025. Total Available Liquidity, defined as total cash plus availability under floorplan credit facilities, was $171.4 million as of March 31, 2025. Cash outflows from operating activities were $6.9 million for the first quarter of 2025, compared to cash inflows of $17.0 million for the same period in 2024. Cash flow from operations in 2024 benefited from the proceeds from the sale of the Company's loans receivable portfolio.
RumbleOn's management will host a conference call to discuss these results on May 7, 2025 at 7:00 a.m. Central Time (8:00 a.m. Eastern Time). To access the conference call, United States callers may dial 1-800-717-1738 (1-646-307-1865 for callers outside of the United States) and enter conference ID 06816. A live and archived webcast will be accessible from RumbleOn's Investor Relations website at https://investors.rumbleon.com.
RumbleOn, Inc. (NASDAQ: RMBL), operates through two operating segments: a powersports dealership group and a vehicle transportation services entity, Wholesale Express, LLC ("Express"). We believe our Powersports group is the largest powersports retail group in the United States offering a wide selection of new and pre-owned motorcycles, all-terrain vehicles, utility terrain or side-by-side vehicles, personal watercraft, snowmobiles and other powersports products. We also offer parts, apparel, accessories, finance & insurance products and services, and aftermarket products from a wide range of manufacturers. We are one of the largest purchasers of pre-owned powersports vehicles in the United States and utilize our proprietary RideNow Cash Offer technology to acquire vehicles directly from consumers. Our Express business provides asset-light transportation brokerage services facilitating automobile transportation primarily between and among dealerships and auctions throughout the United States. To learn more, please visit https://www.rumbleon.com.
This press release contains "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act of 1995, which statements may be identified by words such as "expects," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning. Readers are cautioned not to place undue reliance on these forward-looking statements, which are based on our expectations as of the date of this press release and speak only as of the date of this press release and are advised to consider the factors listed under the heading "Forward-Looking Statements" and "Risk Factors" in the Company's SEC filings, as may be updated and amended from time to time. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
To supplement its condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"), the Company uses the following non-GAAP financial measures: EBITDA, Adjusted EBITDA, Free Cash Flow, Non-Vehicle Net Debt, and Adjusted SG&A (collectively the "non-GAAP financial measures"). The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that they provide useful information about operating results, enhance the overall understanding of our operating performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. The non-GAAP measures used by the Company in this press release may be different from the measures used by other companies.
(Unaudited)
| First Quarter | 2025 | 2024 |
|---|---|---|
| Revenue: | ||
| Powersports vehicles | $ 172.0 | $ 214.8 |
| Parts, service and accessories | $ 46.1 | $ 52.9 |
| Finance and insurance, net | $ 21.1 | $ 25.8 |
| Vehicle transportation services | $ 5.5 | $ 14.3 |
| Total revenue | $ 244.7 | $ 307.8 |
| Cost of revenue: | ||
| Powersports vehicles | $ 147.8 | $ 185.1 |
| Parts, service and accessories | $ 25.3 | $ 29.3 |
| Vehicle transportation services | $ 4.4 | $ 10.8 |
| Total cost of revenue | $ 177.5 | $ 225.2 |
| Gross profit | $ 67.2 | $ 82.6 |
| Selling, general and administrative | $ 61.1 | $ 73.9 |
| Depreciation and amortization | $ 2.3 | $ 3.5 |
| Operating income (loss) | $ 3.8 | $ 5.2 |
| Other income (expense): | ||
| Floor plan interest expense | $ (2.8) | $ (4.0) |
| Other interest expense, net | $ (10.8) | $ (12.1) |
| Other income (expense) | $ 0.2 | $ 0.3 |
| Total other expense | $ (13.4) | $ (15.8) |
| Loss before income taxes | $ (9.6) | $ (10.6) |
| Income tax expense (benefit) | $ 0.1 | $ (0.3) |
| Net loss | $ (9.7) | $ (10.3) |
| Weighted average shares-basic and diluted | 37.8 | 35.1 |
| Net loss per share - basic and diluted | $ (0.26) | $ (0.29) |
| Common shares outstanding, at period end | 37.8 | 35.2 |
(Unaudited)
| Assets | Mar. 31, 2025 | Dec. 31, 2024 |
|---|---|---|
| Current assets: | ||
| Cash | $ 41.1 | $ 85.3 |
| Restricted cash | $ 15.1 | $ 11.4 |
| Accounts receivable, net | $ 26.8 | $ 30.5 |
| Inventory | $ 272.6 | $ 240.6 |
| Prepaid expense and other current assets | $ 2.7 | $ 3.6 |
| Total current assets | $ 358.3 | $ 371.4 |
| Property and equipment, net | $ 61.7 | $ 63.5 |
| Right-of-use assets | $ 155.9 | $ 157.1 |
| Franchise rights and other intangible assets | $ 161.8 | $ 161.9 |
| Other assets | $ 1.2 | $ 1.3 |
| Total assets | $ 738.9 | $ 755.2 |
| Liabilities and Stockholders' Equity | Mar. 31, 2025 | Dec. 31, 2024 |
|---|---|---|
| Current liabilities: | ||
| Accounts payable and other current liabilities | $ 74.3 | $ 75.4 |
| Vehicle floor plan notes payable | $ 240.9 | $ 209.9 |
| Current portion of long-term debt | $ 0.4 | $ 39.1 |
| Total current liabilities | $ 315.6 | $ 324.4 |
| Long-term liabilities: | ||
| Long-term debt | $ 215.1 | $ 212.0 |
| Operating lease liabilities | $ 129.0 | $ 129.8 |
| Other long-term liabilities, including finance lease obligation | $ 52.3 | $ 52.3 |
| Total long-term liabilities | $ 396.4 | $ 394.1 |
| Total liabilities | $ 712.0 | $ 718.5 |
| Stockholders' equity: | ||
| Additional paid-in capital | $ 700.8 | $ 700.9 |
| Accumulated deficit | $ (669.6) | $ (659.9) |
| Treasury stock | $ (4.3) | $ (4.3) |
| Total stockholders' equity | $ 26.9 | $ 36.7 |
| Total liabilities and stockholders' equity | $ 738.9 | $ 755.2 |
(Unaudited)
| Three Months Ended Mar. 31 | 2025 | 2024 |
|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| Net loss | $ (9.7) | $ (10.3) |
| Adjustments to reconcile net loss to net cash from operating activities: | ||
| Depreciation and amortization | $ 2.3 | $ 3.5 |
| Amortization of debt issuance costs | $ 2.5 | $ 2.2 |
| Stock-based compensation | $ (0.1) | $ 1.4 |
| Deferred taxes | $ — | $ (0.4) |
| Interest paid-in-kind capitalized in debt principal | $ 0.8 | $ 0.3 |
| Changes in operating assets and liabilities, net of acquisitions: | ||
| Accounts receivable | $ 3.7 | $ 16.8 |
| Inventory | $ (32.0) | $ (6.2) |
| Prepaid expenses and other assets | $ 0.9 | $ 2.2 |
| Other liabilities | $ 0.3 | $ 0.4 |
| Accounts payable and accrued liabilities | $ (0.1) | $ 3.9 |
| Floor plan trade note borrowings(1) | $ 24.5 | $ 3.2 |
| Net cash provided by (used in) operating activities(1) | $ (6.9) | $ 17.0 |
| CASH FLOWS FROM INVESTING ACTIVITIES | ||
| Purchase of property and equipment(1) | $ (0.5) | $ (0.6) |
| Technology development | $ — | $ (0.1) |
| Net cash used in investing activities(1) | $ (0.5) | $ (0.7) |
| CASH FLOWS FROM FINANCING ACTIVITIES | ||
| Repayment of debt | $ (38.8) | $ (35.3) |
| Increase in borrowings from non-trade floor plans(1) | $ 6.5 | $ 5.7 |
| Other financing | $ (0.8) | $ (0.3) |
| Net cash used in financing activities(1) | $ (33.1) | $ (29.9) |
| NET CHANGE IN CASH | $ (40.5) | $ (13.6) |
| Cash and restricted cash at beginning of period | $ 96.7 | $ 77.0 |
| Cash and restricted cash at end of period | $ 56.2 | $ 63.4 |
(in millions)
We define EBITDA as net loss adjusted to add back interest expense, the impact of income taxes, depreciation and amortization. Adjusted EBITDA further adds back non-cash stock-based compensation, management transition costs, certain litigation expenses not associated with our ongoing operations, and other non-recurring costs and credits, as these recoveries, charges and expenses are not considered a part of our core business operations and are not necessarily an indicator of ongoing, future company performance. Adjusted EBITDA is reduced by floor plan interest expense. Our industry typically treats Interest expense on vehicle floor plan debt as operating expense, as vehicle floor plan debt is integral to our operations and is collateralized by our powersports vehicles.
Adjusted EBITDA is one of the primary metrics we use to evaluate the financial performance of our business. We present Adjusted EBITDA because we believe it is helpful in highlighting trends in our operating results and it is frequently used by analysts, investors and other interested parties to evaluate companies in our industry.
| First Quarter | 2025 | 2024 |
|---|---|---|
| Net loss (GAAP) | $ (9.7) | $ (10.3) |
| Add back: | ||
| Floor plan interest expense | $ 2.8 | $ 4.0 |
| Other interest expense | $ 10.8 | $ 12.1 |
| Depreciation and amortization | $ 2.3 | $ 3.5 |
| Income tax expense (benefit) | $ 0.1 | $ (0.3) |
| EBITDA (non-GAAP) | $ 6.3 | $ 9.0 |
| Adjustments: | ||
| Floor plan interest expense | $ (2.8) | $ (4.0) |
| Stock-based compensation | $ (0.1) | $ 1.4 |
| Lease expense associated with favorable related party leases in excess of contractual lease payments | $ 0.3 | $ 0.3 |
| Other non-recurring costs(1) | $ 2.2 | $ 0.9 |
| Management transition costs | $ 1.1 | $ 0.1 |
| Adjusted EBITDA (non-GAAP) | $ 7.0 | $ 7.7 |
(1) Other non-recurring costs, which include one-time expenses, such as costs incurred for litigation not part of our normal, ongoing operations. For the 2024 period, this also included costs for a canceled service contract.
(in millions)
We define Free Cash Flow as cash flows from operating activities less capital expenditures of property and equipment (not including acquisitions). We view free cash flow when assessing the Company's sources of liquidity and capital resources. We believe that free cash flow is helpful in understanding the Company's capital requirements and provides an additional means to reflect the cash flow trends in the Company's business. We believe Free Cash Flow is useful to investors because it represents the cash that our operating businesses generate, before taking into account non-operational cash movements. Free Cash Flow has certain limitations in that it does not represent the total increase or decrease in the cash balance for the period, nor does it represent the residual cash flow for discretionary expenditures. Therefore, we think it is important to evaluate Free Cash Flow along with our consolidated statement of cash flows.
| First Quarter | 2025 | 2024 |
|---|---|---|
| Cash flows from operating activities (GAAP) | $ (6.9) | $ 17.0 |
| Less: | ||
| Capital expenditures | $ (0.5) | $ (0.6) |
| Free Cash Flow (non-GAAP) | $ (7.4) | $ 16.4 |
We define Non-Vehicle Net Debt as total principal of long-term debt, including current maturities, less unrestricted cash. Our restricted cash is principally related to vehicle floor plan debt and is therefore not part of this calculation. Vehicle floor plan debt and finance lease obligations are not included in this measure. We believe that Non-Vehicle Net Debt is useful to investors and analysts as a measure of our financial position. We use Non-Vehicle Net Debt to monitor and compare our financial position from period to period.
| As of | Mar. 31, 2025 | Dec. 31, 2024 |
|---|---|---|
| Long-term debt, including current maturities (GAAP) | $ 215.5 | $ 251.1 |
| Add back: unamortized debt discount and issuance costs | $ 13.8 | $ 16.3 |
| Principal of long-term debt, including current maturities | $ 229.3 | $ 267.4 |
| Less: unrestricted cash | $ (41.1) | $ (85.3) |
| Non-Vehicle Net Debt (non-GAAP) | $ 188.2 | $ 182.1 |
We define Adjusted SG&A as SG&A adjusted to deduct transaction costs, certain litigation expenses not associated with our ongoing operations, management transition costs and other non-recurring costs, as these charges and expenses are not considered a part of our core business operations and are not necessarily an indicator of the ongoing run rate of our SG&A. We use Adjusted SG&A to measure our progress toward achieving our goals. Adjusted SG&A is a non-GAAP financial measure and should not be used as a replacement for SG&A reported in compliance with GAAP. Adjusted SG&A has certain limitations in that it does not represent the total SG&A for the period. Therefore, we think it is important to evaluate Adjusted SG&A along with SG&A and our overall statement of operations.
| First Quarter | 2025 | 2024 |
|---|---|---|
| SG&A (GAAP) | $ 61.1 | $ 73.9 |
| % of Gross Profit | 90.9 % | 89.5 % |
| Adjustments: | ||
| Lease expense associated with favorable related party leases in excess of contractual lease payments | $ (0.3) | $ (0.3) |
| Other non-recurring costs(1) | $ (2.2) | $ (0.9) |
| Management transition costs | $ (1.1) | $ (0.1) |
| Adjusted SG&A (non-GAAP) | $ 57.5 | $ 72.6 |
| % of Gross Profit | 85.6 % | 87.9 % |
(1) Other non-recurring costs, which include one-time expenses incurred, such as litigation costs outside the Company's ongoing operations. For the 2024 period, this amount also included costs for a canceled service contract.
Key Term Loan Credit Agreement Covenant Compliance Calculations as of March 31, 2025(1)
| Covenant | Calculation | Maximum Allowed |
|---|---|---|
| Consolidated Total Net Leverage Ratio | 4.7x | 9.5x |
| Consolidated Senior Secured Net Leverage Ratio | 4.7x | 9.0x |
(1) Calculated in accordance with our credit agreement.
SOURCE RumbleOn