RideNow Group, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for the three months ended September 30, 2026, was $244.3 million, a 13.1% decrease from $281.0 million in the prior year period.
• Total gross profit was $65.5 million, down 13.8% from $76.0 million in the prior year.
• Selling, general & administrative (SG&A) expenses were $59.6 million, a 7.5% decrease from $64.4 million in the prior year.
• Net loss increased to $13.9 million compared to a net loss of $4.1 million in the prior year.
• Adjusted EBITDA decreased to $5.3 million from $12.3 million in the prior year.
• Operating cash flow for the nine months ended September 30, 2026, was a use of $41.7 million, compared to an inflow of $15.5 million in the prior year.
• Adjusted Free Cash Flow for the nine months ended September 30, 2026, was $14.2 million, an increase of 173.1% from $5.2 million in the prior year.
• Cash (unrestricted) was $29.2 million as of September 30, 2026, down from $29.5 million as of December 31, 2025.
• Long-term debt, including current maturities, was $219.0 million as of September 30, 2026, up 5.5% from $207.6 million as of December 31, 2025.
• Non-Vehicle Net Debt was $203.7 million as of September 30, 2026, up 7.6% from $189.3 million as of December 31, 2025.
• Total Available Liquidity was $149.4 million as of September 30, 2026.

Guidance and Future Outlook:

• Management expects Q4 Adjusted EBITDA to outpace Q3, bucking the typical seasonal trend.
• The Company expects to yield an incremental $10 million of run-rate cost savings as it exits 2027.
• Management anticipates capturing substantial operating leverage when the broader powersports cycle rebounds.
• The Company is in advanced discussions for a new $50.0 million senior secured asset-based revolving credit facility (ABL Facility).

Business Segments and Product Lines:

• On a same-store sales basis, Powersports Revenue was down 7.9% in the third quarter, driven by a decrease in unit sales.
• New Powersports retail unit sales were 8,127, a 17.9% decrease from 9,904 in the prior year.
• Pre-owned Powersports retail unit sales were 4,055, a 13.7% decrease from 4,701 in the prior year.
• Wholesale vehicle revenue was $4.4 million, an 18.9% increase from $3.7 million in the prior year.
• Finance & Insurance, net revenue was $21.7 million, a 12.9% decrease from $24.9 million in the prior year.
• Parts, Service, and Accessories revenue was $47.1 million, a 7.3% decrease from $50.8 million in the prior year.
• The Company completed an accretive tuck-in acquisition of a dealership in Tallahassee, Florida.
• The Company implemented the "RideNow Clear Price" transparent pricing model in August to align with FTC guidance.

Market and Competitive Landscape:

• Revenue contraction was primarily driven by lower unit volume coupled with store consolidation efforts.
• The reduction in unit sales was largely driven by a decrease in overall consumer discretionary spending.
• The initial market implementation of the new pricing model impacted retail volume against non-compliant competitors during the quarter.
• The Company believes the broader powersports cycle is expected to rebound, positioning the Company to capture operating leverage.

Risks and Challenges:

• The Company faces risks related to the duration and impact of macroeconomic, consumer demand, and regulatory conditions.
• The Company must refinance indebtedness at or prior to maturity and may need additional financing for acquisitions or unforeseen circumstances.
• Dependence on floor plan facilities for inventory financing, which may be reduced or terminated, presents a risk.
• The Company is sensitive to unfavorable economic conditions and demand factors affecting the powersports industry.
• Potential disruption in service on websites, cybersecurity risks, and compliance with privacy and data processing laws are noted risks.

Management Commentary and Tone:

• Chairman, CEO, and President Michael Quartieri stated the contraction was driven by the proactive rollout of the "RideNow Clear Price" strategy to comply with FTC pricing guidelines.
• Management believes the pricing strategy is the right move to build long-term customer trust and position the Company as the dealership group of choice.
• Management noted a rebound in the fourth quarter as consumer awareness grows.
• The Company reduced costs by $4.6 million on an annualized basis during the quarter.
• Management expressed confidence that structural changes and cost reductions set the Company up well for future operating leverage.

Other Key Points:

• The Company successfully refinanced its senior secured term loan facility with a new $220.0 million term loan maturing in September 2031.
• The Company incurred a loss on debt extinguishment of $5.7 million in the third quarter related to the refinancing.
• Capital expenditures were $2.5 million for the nine months ended September 30, 2026, down 50.0% from $5.0 million in the prior year.
• Inventory increased to $329.2 million as of September 30, 2026, from $257.4 million as of December 31, 2025.
• The Company has approximately $101.8 million available under its powersports floor plan lines of credit as of September 30, 2026.