RideNow's Turnaround Gains Traction: New Floor Plan Facility and Refinancing Progress Fuel 154% Stock Surge

The powersports dealer posts fourth straight quarter of same-store growth, expands liquidity, and moves closer to accretive acquisitions.

RDNW · Earnings Call · 2026-08-11

Turnaround intact

RideNow Group (RDNW) continued its operating momentum into the second quarter of 2026, delivering a “same-store revenue reached $291.7 million, up 3% over the prior year period” — Michael Quartieri, Chairman, Chief Executive Officer, and President · 2026-08-11 and a 19.2% increase in adjusted EBITDA to $20.5 million. Management attributed the improvement to disciplined execution across its stores and corporate support center, with a continued focus on what it can control “within the four walls of our operations” — Michael Quartieri, Chairman, Chief Executive Officer, and President · 2026-08-11. This marks the fifth consecutive quarter of same-store gross profit growth, a clear validation of the strategic plan. The company also achieved several
key milestones during the quarter, including its inclusion in the Russell 2000 Index — a signal of improved institutional visibility — and the completion of two store relocations in Florida. These moves are part of a broader effort to consolidate smaller locations into larger, multi-brand 'aircraft carrier' stores, a theme that has been central to the CEO's strategy since the turnaround began.

Liquidity and refinancing momentum

A notable catalyst this quarter was the announcement of a new floor plan facility dedicated to used inventory. As management noted, they secured a “new $20 million used floor plan facility” — Michael Quartieri, Chairman, Chief Executive Officer, and President · 2026-08-11 to replace an existing related-party line. This, combined with expanded availability for new products, lifted total liquidity to $158.2 million at quarter-end. The company has been actively managing its inventory to a comfortable 4-month supply, with a deliberate tilt toward used units where margins are more attractive. The balance sheet continues to carry meaningful leverage, with non-vehicle net debt of $174.4 million. However, the company is making clear progress on refinancing — a priority that has been discussed in prior quarters.

Our major focus right now is getting the refinancing completed, which I said we'll have more news to share in the coming weeks.
Michael Quartieri, Chairman, Chief Executive Officer, and President · 2026-08-11

Successful refinancing would reduce interest costs and free up cash for the next phase of growth: Accretive acquisitions. The CEO reiterated that once the refinancing closes, they can “turn the engine on” for tuck-in deals and new-market expansion.

Navigating macro volatility

Despite the strong quarter, management sounded a cautious note on the current environment. While June saw a nice year-over-year increase, they flagged that early Q3 same-store sales are “down slightly on a year-over-year basis in the low single digits” — Michael Quartieri, Chairman, Chief Executive Officer, and President · 2026-08-11 due to market volatility. This echoes the stance taken throughout the turnaround: the company focuses on operational levers, not external noise. Consumer financing behavior remains steady, with roughly two-thirds of buyers financing, and no significant changes in credit metrics have been observed. The broader market narrative has been dominated by AI and data center spending, but RideNow stands apart as a disciplined consumer cyclical play. Its recent stock surge — up over 150% in the past 90 days — suggests investors are rewarding the tangible operational improvements and the prospect of deleveraging. The company's gross margin has stabilized at around 27.5% (Gross Margin), and while free cash flow remains thin, the new floor plan facility provides a bridge to the planned acquisition engine. As the CEO put it, the company is focused on building sustained shareholder value through diligent execution and financial discipline — a message that is resonating as the turnaround matures.