Breaking Down RumbleON, Inc. (RMBL) Financial Health: Key Insights for Investors

You're looking at RumbleON, Inc. (RMBL) and trying to map the path through a major corporate pivot, and honestly, the numbers show a company in transition, not a straight-line growth story. The shift to the new name, RideNow Group, Inc. (RDNW), effective August 13, 2025, aligns with their core powersports segment, but the financials reflect a challenging market: Q2 2025 revenue dropped 11% year-over-year to $299.9 million, and they posted a net loss of $32.2 million, largely due to a $34.0 million franchise rights impairment charge. Still, operational efficiency is defintely improving, with Adjusted EBITDA actually increasing to $17.2 million in Q2 2025 from $16.2 million in the prior year period. You need to understand how management plans to use their $185.7 million in total available liquidity as of June 30, 2025, to capitalize on that operational lift while navigating the revenue headwinds and the negative operating cash flow of $6.9 million in Q1 2025.

Revenue Analysis

You need to know the direct takeaway: RumbleON, Inc. (RMBL) is navigating a significant revenue contraction in the 2025 fiscal year, but the underlying profitability mix is showing signs of strategic improvement. The company's top-line revenue for the second quarter of 2025 was $299.9 million, marking an 11.0% year-over-year (YoY) decline from the same period in 2024.

This revenue drop is not a surprise in the current high-interest-rate environment, which defintely impacts big-ticket discretionary purchases like powersports vehicles. For the first half of 2025, the total revenue performance was weak, starting with a 20.5% YoY decrease in Q1 2025, which brought in $244.7 million. The consensus among analysts now projects full-year 2025 revenue for the company-which is rebranding to RideNow Group, Inc. (RDNW)-to be around $1.03 billion to $1.04 billion, reflecting an estimated annual decline of approximately 10% to 14%.

The core of RumbleON, Inc.'s business is the Powersports segment, and its revenue streams break down into four primary categories. This segment is the clear driver, contributing over 99% of the total Q2 2025 revenue. The company is fundamentally a powersports retailer.

• Powersports vehicles (Major Units)
• Parts, service, and accessories
• Finance and insurance (F&I), net
• Vehicle transportation services

Here's the quick math on how those segments contributed to the $299.9 million Q2 2025 revenue:

The most significant change in the revenue mix is the near-collapse of the Vehicle Transportation Services segment (formerly Wholesale Express), which saw revenue plummet by 91.4% in Q2 2025. This segment is now a minimal part of the overall business. Also, while the overall Powersports Dealership Group revenue was down 7.2%, the gross profit only fell by 3.6%. This is a crucial distinction: the company is selling fewer new units (down 11.5%), but the strategic focus on higher-margin pre-owned units (sales up 10.2%) is protecting the gross profit dollar. This shift is a deliberate move to improve margin quality, even as the top-line revenue contracts. You can read more about this in our full analysis: Breaking Down RumbleON, Inc. (RMBL) Financial Health: Key Insights for Investors

Profitability Metrics

You need a clear picture of how RumbleON, Inc. (RMBL) is actually making money, not just how much revenue it pulls in. The short answer is: the company is showing a critical improvement in operational efficiency despite a challenging sales environment, but it is still struggling with bottom-line profitability due to one-time charges.

For the second quarter of 2025, RumbleON reported total revenue of $299.9 million, an 11.0% drop year-over-year (YOY). Still, the management team showed they can control costs, which is a major positive signal for investors. Here's the quick math on the core profitability ratios for Q2 2025:

• Gross Profit Margin: 27.9% ($83.7M Gross Profit / $299.9M Revenue)
• Adjusted EBITDA Margin: 5.7% ($17.2M Adjusted EBITDA / $299.9M Revenue)
• Reported Net Profit Margin: -10.7% ($-32.2M Net Loss / $299.9M Revenue)

Operational Efficiency and Cost Management

The most important trend for RumbleON is the clear improvement in operational efficiency, even as revenue declined. The Gross Profit for Q2 2025 was $83.7 million, a 3.6% decline YOY, which is much less than the 11.0% revenue drop. This tells me the cost of goods sold (COGS) is being managed better. The proof is in the Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization-a proxy for core operating cash flow), which actually increased to $17.2 million from $16.2 million in the prior year.

This gain is due to aggressive cost management, specifically a reduction in Selling, General & Administrative (SG&A) expenses by $4.7 million to $66.7 million. That's a defintely good sign. The focus is shifting from chasing volume to maximizing profit per unit, which is a smart move in a tight market. New unit gross margins improved to 13.2% from 12.3% YOY, and pre-owned margins rose to 18.8% from 17%.

Net Loss and Industry Comparison

Now, let's talk about the net loss. RumbleON reported a net loss of $32.2 million in Q2 2025. This looks bad, but you have to look deeper. The loss included a significant, non-cash $34.0 million impairment charge related to franchise rights. If you back that one-time charge out, the company would have posted a small net profit of approximately $1.8 million, resulting in an adjusted net profit margin of about 0.6%. What this estimate hides is the ongoing interest expense, but it shows the core business is near breakeven before one-off events.

Comparing RumbleON to the industry shows where the company still needs to close the gap. For instance, Harley-Davidson Motor Company (HDMC) is projecting a full-year 2025 operating income margin of 7.0% to 8.0%. RumbleON's Adjusted EBITDA margin of 5.7% in Q2 2025 is close, but not quite there. The average powersports dealer also relies heavily on high-margin fixed operations (parts and service), where margins are typically much higher, often in the 45% to 55% range for public auto dealer groups.

RumbleON's profitability breakdown shows the core challenge and opportunity:

The company is making the right moves to cut costs and focus on higher-margin units, but it needs to sustain this operational improvement to reach the industry's top-tier operating margins. You can read more about the strategic shift in the Mission Statement, Vision, & Core Values of RumbleON, Inc. (RMBL).

Debt vs. Equity Structure

When you look at RumbleON, Inc.'s balance sheet, the first thing that jumps out is the sheer reliance on debt to finance its operations. For a company in the powersports and vehicle retail space, some debt is normal-you need capital to stock inventory-but the current structure shows a high degree of financial leverage (using borrowed money to fund assets).

As of the first quarter of 2025, the company's total debt load, which includes both long-term obligations and the critical short-term inventory financing, was substantial. Short-term debt, primarily in the form of vehicle floor plan notes payable (financing for inventory), stood at $240.9 million, while its long-term debt was $215.1 million. That's a total of over $456 million in debt. To be fair, floor plan debt fluctuates with inventory, but it's defintely a core part of their financing.

Debt-to-Equity: The Leverage Picture

The debt-to-equity (D/E) ratio, which measures the proportion of a company's assets financed by debt versus shareholder equity, paints a clear picture of high risk. Here's the quick math using the Q1 2025 balance sheet data:

• Total Debt (approx.): $456.0 million ($215.1M Long-Term + $240.9M Floor Plan Notes)
• Stockholders' Equity (Q1 2025): $31.2 million
• Calculated Debt-to-Equity Ratio: 14.62

A D/E ratio of 14.62 is extremely high. By comparison, the average D/E ratio for the Auto & Truck Dealerships industry is around 1.61 as of November 2025. This means RumbleON, Inc. is using over 14 dollars of debt for every dollar of equity, suggesting a heavily leveraged capital structure that leaves little buffer for economic downturns or operational missteps.

Recent Debt Management and Refinancing Activity

Management has been aggressively working to restructure its debt in 2025, which is a clear action to reduce this risk. In January 2025, the company fully repaid $38.8 million of its 6.75% convertible senior notes. This repayment was partially supported by a $10.0 million gross proceeds equity rights offering completed in late 2024, demonstrating a necessary, though dilutive, move to balance debt with equity funding.

Also, in Q2 2025, the company executed a critical amendment to its term loan, extending the maturity date by 13 months to September 30, 2027. This extension buys them valuable time for their turnaround plan to take hold. Plus, they were able to pay down $20 million of the term debt and lower the annual interest rate by 0.5%, which is a tangible win for reducing annualized cash interest expense.

The company does not have a widely reported, public credit rating from major agencies like Moody's or S&P, so investors must rely heavily on the financial ratios and cash flow generation to assess credit risk. The focus is on reducing the non-vehicle net debt, which stood at $185.1 million as of June 30, 2025. The strategy is clear: use operational improvements and asset sales to bring that debt figure down and get the capital structure into a more sustainable range. You can dive deeper into the full analysis in Breaking Down RumbleON, Inc. (RMBL) Financial Health: Key Insights for Investors.

Liquidity and Solvency

When you look at RumbleON, Inc. (RMBL)'s financial health, the immediate question is always: can they cover their near-term bills? The short answer is yes, but with a tight margin and a heavy reliance on secured financing. This is defintely a balance sheet that requires active management.

The core of a company's immediate financial resilience lies in its liquidity positions-measured by the Current Ratio and Quick Ratio. For RumbleON, Inc., the latest calculations show a very thin buffer, which is typical for a dealership model with high inventory.

• Current Ratio: The ratio stands at approximately 1.16. This means the company has about $1.16 in current assets (cash, receivables, inventory) for every $1.00 in current liabilities. A ratio above 1.0 is technically solvent, but this is a tight squeeze.
• Quick Ratio (Acid-Test Ratio): This is much lower, around 0.23. Since this ratio excludes inventory (which is hard to liquidate fast), it highlights the company's dependency on selling its powersports vehicles to meet short-term obligations.

Here is the quick math on their liquidity, based on recent financial data:

Working Capital and Cash Flow Trends

The working capital trend for RumbleON, Inc. shows the impact of a challenging consumer environment, even as management works to control costs. The shift in cash flow from operations (CFO) is the clearest signal of this pressure. For the first six months of the 2025 fiscal year, cash flow from operating activities was a modest inflow of just $4.0 million. This is a sharp decline from the $29.2 million inflow reported in the same period a year prior, though that 2024 figure did benefit from a one-time sale of a finance receivable portfolio. Still, the drop is significant.

The company's cash flow statements for the first half of 2025 reveal a few key trends across the three main activities:

• Operating Cash Flow: Positive at $4.0 million for the first half of 2025, but volatile. Q1 2025 alone saw an outflow of $6.9 million, which was then offset by a stronger Q2. Volatility here means less predictable internal funding for growth or debt service.
• Investing Cash Flow: This is relatively small, primarily driven by capital expenditures (CapEx). For the first six months of 2025, CapEx was an outflow of $2.9 million, suggesting a disciplined or constrained approach to long-term asset investment.
• Financing Cash Flow: This is where the action is. The company has been actively managing its debt maturity profile. A major move was the repayment of $38.8 million in 6.75% convertible senior notes in January 2025. Plus, they executed a critical term loan amendment in August 2025, extending maturity to September 30, 2027, and agreeing to pay down $20.0 million in principal. These are necessary steps to buy time and reduce immediate refinance risk.

Liquidity Strengths and Concerns

The primary strength is the total available liquidity, which stood at a healthy $185.7 million as of June 30, 2025. This figure includes $59.8 million in cash (inclusive of restricted cash) and $125.9 million in availability under their short-term revolving floor plan credit facilities. This access to capital is crucial. Another strength is the recent reduction in the minimum liquidity covenant with lenders from $30 million to $20 million for the remainder of 2025, giving them more operational breathing room.

However, the low Quick Ratio of 0.23 is a real concern. It means a sudden downturn in the used powersports market could quickly strain their ability to cover non-inventory-backed liabilities. The fact that the company is actively extending debt maturities and has a high non-vehicle net debt of $185.1 million as of Q2 2025, points to a balance sheet that is still structurally debt-heavy. The liquidity is there, but it is heavily secured by inventory and requires constant monitoring. You can dive deeper into the full financial picture in our main post: Breaking Down RumbleON, Inc. (RMBL) Financial Health: Key Insights for Investors.

Valuation Analysis

You're looking for a clear signal on RumbleON, Inc. (RMBL), and the short answer is that traditional valuation metrics are flashing a warning sign, suggesting the stock is currently priced above the analyst consensus, which points to a 'Hold' rating.

As of November 2025, the stock price sits around the $3.71 mark. This is a premium over the most recent analyst average price target of $3.17, which suggests the market is pricing in a slightly more optimistic near-term recovery than the Street's current models. To be fair, the company is in a tough spot, and its valuation is complicated by negative earnings.

Key Valuation Multiples: What the Numbers Say

When a company is losing money, which RumbleON, Inc. is, the standard Price-to-Earnings (P/E) ratio becomes less useful, or even negative. This is the case here, as the P/E ratio is reported as -1.28. You can't compare that to a profitable peer, so we have to look at other measures.

The Price-to-Book (P/B) ratio is also not readily available, which often happens when a company's book value (assets minus liabilities) is small or negative. Still, the Enterprise Value-to-EBITDA (EV/EBITDA) ratio gives us a cleaner look at the operational value, stripping out debt and non-cash items like depreciation.

Here's the quick math on the key metrics, using the most recent available data:

An EV/EBITDA of 3.44x is relatively low for most industries, suggesting the company could be undervalued on an operational basis if you believe its earnings before interest, taxes, depreciation, and amortization (EBITDA) is sustainable. But, the market is skeptical, which is why the stock price is higher than the analyst target. That's a classic disconnect you need to investigate defintely.

Stock Trajectory and Analyst Consensus

Looking back at the last 12 months, RumbleON, Inc. (RMBL) has been on a wild ride, with a 52-week trading range between a low of $1.48 and a high of $7.06. That kind of volatility is a clear sign of investor uncertainty, driven by mixed financial results like the Q2 2025 revenue decline of 11%, despite an increase in Adjusted EBITDA to $17.2 million. The stock's current price of $3.71 puts it near the middle of this range, but the short-term trend has been signaling a further fall.

The Street's official stance is a consensus 'Hold' rating, with an average recommendation of 2.7 on a scale where 1 is a Strong Buy. This reflects the reality that while the company is executing cost reductions-like the $12.8 million reduction in SG&A in Q1 2025-it is still facing significant revenue headwinds. Analysts are forecasting a full-year 2025 loss of -$0.67 per share on revenues of $1.04 billion.

Dividend Policy and Investor Action

RumbleON, Inc. does not currently pay a dividend. The dividend yield is 0.0%, as the company is focused on stabilizing the business and managing its debt, not returning capital to shareholders. This makes sense for a growth-focused company, or one in a turnaround phase, but it removes a layer of downside protection for investors.

If you want to dig deeper into the company's operational footing, you can check out the full analysis in the post: Breaking Down RumbleON, Inc. (RMBL) Financial Health: Key Insights for Investors.

Next Step: Review the Q3 2025 10-Q filing immediately upon release to see if the company's actual Adjusted EBITDA aligns with the $17.2 million Q2 result and if the revenue decline has bottomed out.

Risk Factors

You're looking at RumbleON, Inc. (RMBL) and seeing a company in the middle of a major overhaul, but that transition brings clear financial and operational risks you need to map out. The core takeaway is that while management is cutting costs effectively, the revenue decline from a challenging consumer environment is the primary near-term threat, and it's hitting their non-core business hard.

The biggest external risk is simply the macroeconomic headwind. Powersports are a discretionary purchase, so the challenging backdrop for consumers means sales volumes are down. In the second quarter of 2025 (Q2 2025), total revenue fell by 11.0% to $299.9 million compared to the prior year, driven by lower unit sales. New unit sales were down 11.5% in Q2 2025, a clear sign that higher interest rates and economic uncertainty are pushing buyers away from big-ticket items. Also, the ongoing volatility from tariffs creates an unpredictable cost structure for new units, which is a constant headache for inventory planning.

Internally, two operational and financial risks jump out from the recent filings:

• Impairment Charge: The Q2 2025 results included a substantial $34.0 million impairment charge related to franchise rights. This non-cash hit ballooned the net loss to $32.2 million for the quarter, up significantly from the $0.7 million net loss in Q2 2024. That's a red flag on the balance sheet, suggesting the value of some acquired assets is not holding up under current market conditions.
• Wholesale Express Collapse: The non-core vehicle transportation services segment, Wholesale Express, saw its revenue drop dramatically by 91.4% in Q2 2025, down to just $1.3 million. That business is nearly gone.

Here's the quick math on the operational efficiency: while revenue is down, the company's strict cost discipline is helping. Selling, General & Administrative (SG&A) expenses were reduced by $4.7 million year-over-year in Q2 2025, landing at $66.7 million. This focus on expense management is why Adjusted EBITDA actually increased by $1.0 million to $17.2 million, despite the lower sales volume. That's a good sign they can control what they can control.

The company's mitigation strategy is a decisive pivot toward their core strengths, which they are now emphasizing through the rebranding to RideNow Group, Inc. This strategic shift is anchored by three clear actions:

• Debt Restructuring: They amended their term loan in August 2025, extending the maturity to September 30, 2027, and securing a 50-basis point interest rate reduction. Plus, they reduced the minimum liquidity requirement from $30 million to $20 million for the rest of 2025.
• Pre-Owned Focus: They are leveraging strong margins in pre-owned units, with pre-owned unit sales actually growing 10.2% in Q2 2025. This counters the new unit weakness.
• Operational Streamlining: The rebranding and headquarters move to Chandler, Arizona, is meant to reinforce a cultural shift back to their roots as a leading powersports dealership group, focusing on operational excellence across their 54 dealerships.

What this estimate hides is the risk of execution failure during such a massive transformation. Changing the name, moving the headquarters, and trying to instill a new culture across dozens of locations is defintely a heavy lift. If you want a deeper dive into the numbers behind this pivot, you should check out our full analysis: Breaking Down RumbleON, Inc. (RMBL) Financial Health: Key Insights for Investors.

RMBL Financial Risk Snapshot (Q2 2025)

Your next step should be to monitor the Q3 2025 results for any further impairment charges and confirm the continued reduction in SG&A as a percentage of gross profit.

Growth Opportunities

You're looking at RumbleON, Inc. (RMBL) and seeing a company in the middle of a major overhaul, which is defintely a high-risk, high-reward situation. The direct takeaway is this: while consensus analyst estimates for the full fiscal year 2025 revenue show a decline, the company's aggressive strategic pivot-including its rebrand to RideNow Group-is already yielding better operational efficiency, specifically in the profitable pre-owned segment.

The market is clearly cautious, with full-year 2025 revenue estimates sitting between $1.03 billion and $1.04 billion, a significant cut from earlier forecasts and a projected annual decline. This caution is warranted, as the consensus earnings per share (EPS) estimate for 2025 is a loss of -$0.67 to -$0.71 per share. But what this estimate hides is the structural change driving future growth, which is anchored in the 'Vision 2026' strategic plan.

Strategic Pillars Driving Future Revenue

The company's growth prospects are now tied directly to its 'back to our roots' strategy, which culminated in the August 2025 rebrand to RideNow Group, Inc. (RDNW). This shift isn't just a name change; it's a focus on core strengths, aiming for annual revenue exceeding $1.7 billion and adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) greater than $150 million by the end of calendar year 2026. That's a huge jump, and it hinges on three clear strategic pillars:

• Operate the best performing dealerships in America.
• Accelerate the pre-owned vehicle business growth.
• Allocate capital to maximize long-term per share value.

The focus on operational excellence is already showing up in the numbers. Here's the quick math: Q2 2025 Adjusted EBITDA was $17.2 million, a $1 million improvement year-over-year, despite an 11.0% revenue decrease, which is a testament to strong cost discipline. They are simply running a tighter ship.

Competitive Advantages and Market Expansion

RumbleON, Inc. (RMBL) holds a key competitive advantage as the nation's largest powersports retailer, operating 54 powersports dealerships. Their main growth engine is the proprietary RideNow Cash Offer Tool, which allows them to acquire high-quality, pre-owned powersports vehicles directly from consumers at scale. This is crucial because consumers are shifting to pre-owned products due to economic pressures, and the company is capitalizing on that trend.

The strong demand for used units is translating to better margins, which is where the real opportunity lies. In Q2 2025, pre-owned gross margins improved to 18.8% from 17% the prior year, highlighting the profitability of this segment. This is why the strategic initiative to leverage the Cash Offer Tool and pilot standalone pre-owned dealerships is a clear action point. Plus, the company has strengthened its balance sheet by extending the term loan maturity to September 30, 2027, and reducing annualized cash interest expense by $3.4 million, giving them more runway to execute the turnaround.

If you want to dig deeper into the company's recent financial results and the full context of this turnaround, you can read our full analysis here: Breaking Down RumbleON, Inc. (RMBL) Financial Health: Key Insights for Investors.