Rush Enterprises, Inc. (RUSHB): Business Model Canvas [Dec-2025 Updated]

You're looking to map out the engine room of one of North America's biggest commercial vehicle players, and honestly, understanding Rush Enterprises, Inc.'s integrated model is key to seeing where the real money is made. Based on late 2025 figures, this isn't just about selling new trucks; it's about the sticky, high-margin service side, where aftermarket parts and service drove approximately 63.7% of gross profit in Q3 2025 alone, supporting a trailing twelve-month revenue of $7.67 billion. I've broken down their entire nine-block strategy-from their extensive network of over 155 Rush Truck Centers to their large lease fleet-so you can see exactly how they manage risk and capture value across the entire commercial vehicle lifecycle; dive in below to see the full, precise picture.

Rush Enterprises, Inc. (RUSHB) - Canvas Business Model: Key Partnerships

The Key Partnerships for Rush Enterprises, Inc. are foundational to its integrated, one-stop-shop model across sales, service, leasing, and finance for the commercial vehicle industry.

Major commercial truck manufacturers (Peterbilt, International, Ford)

Rush Enterprises, Inc. operates Rush Truck Centers, representing several truck and bus manufacturers across its more than 150 locations in 23 states and Ontario, Canada.

• Manufacturers represented include Peterbilt, International, Hino, Isuzu, Ford, Dennis Eagle, IC Bus, and Blue Bird.
• Sales of new Peterbilt commercial vehicles accounted for approximately 50.7% of the Company's new vehicle sales revenue for the year ended December 31, 2023.
• Dealership agreements with manufacturers impose restrictions, including on a change in control of Rush Enterprises, Inc..

PacLease and Idealease for truck leasing and rental franchises

Rush Truck Leasing is affiliated with PacLease and Idealease, offering full-service commercial truck leasing and rentals.

Metric	PacLease Affiliation	Idealease Affiliation
Number of Locations	26 locations	35 locations
Truck Brand Offered	Peterbilt trucks	International truck lease and rental options

As of the third quarter of 2025, Rush Truck Leasing operated with more than 10,000 trucks in its lease and rental fleet and more than 2,200 trucks under contract maintenance agreements. Lease and rental revenue for the third quarter of 2025 was $93.3 million.

Investment in Cummins Clean Fuel Technologies for CNG systems

Rush Enterprises, Inc. provides CNG fuel systems through its investment in Cummins Clean Fuel Technologies, Inc.. The joint venture to form Cummins Clean Fuel Technologies was established in 2022. Rush Truck Centers offers dedicated service bays and certified technicians for natural gas and hybrid vehicles.

Financial institutions for customer financing and insurance products

Rush Truck Financing offers financing solutions, including terms up to 84 months on select makes and models. The company has financing arrangements documented with financial institutions such as PACCAR Financial Corp., Bank of Montreal (BMO), and Wells Fargo Bank, N.A.. Rush Truck Insurance Services provides commercial truck insurance products, including primary liability, general liability, and workers compensation, for Class 8 fleets of five vehicles or more.

Key suppliers for aftermarket parts and components

The Company purchases most of its Peterbilt parts from PACCAR, Inc., the parent company of Peterbilt. Aftermarket products and services revenues reached $636.3 million in the second quarter of 2025. Rush Truck Centers maintains an inventory of genuine OEM and all-makes parts valued at $340 million.

Finance: draft 13-week cash view by Friday.

Rush Enterprises, Inc. (RUSHB) - Canvas Business Model: Key Activities

You're looking at the core engine of Rush Enterprises, Inc., the activities that drive their multi-billion dollar operation in the commercial vehicle space. It's all about scale and service depth.

Operating the largest commercial vehicle dealership network in North America is the foundation. As of July 2025, this network comprised 66 locations across 21 states and Canada. The largest single expansion in the company's history, the Summit Truck Group acquisition in December 2021, brought the network to 125 franchised dealership locations across 22 states at that time.

The aftermarket business is a massive profit driver. For the quarter ended September 30, 2025, parts, service, and collision center revenues totaled $642.7 million. This segment contributed approximately 63.7% of the Company's total gross profit in that same quarter. The operational efficiency of these service centers is tracked by the absorption ratio, which stood at 129.3% in the third quarter of 2025. Rush Enterprises has a stated goal to grow aftermarket parts and service revenue to $3.5B by 2027.

Managing the Rush Truck Leasing fleet and contract maintenance agreements provides a less cyclical revenue stream. As of the third quarter of 2025, Rush Truck Leasing operated a lease and rental fleet of more than 10,000 trucks and supported more than 2,200 trucks under contract maintenance agreements. Lease and rental revenue for the third quarter of 2025 was $93.3 million, marking a 4.7% increase compared to the third quarter of 2024. The 2025 projection was for lease and rental revenue to increase by approximately 6.0% for the full year.

New and used commercial vehicle sales across multiple classes are tracked closely, though demand can be soft. Here's a look at the unit deliveries for the quarter ended September 30, 2025:

Vehicle Class	New Units Delivered (Q3 2025)	Used Units Delivered (Q3 2025)
Heavy-Duty Trucks	3,215	N/A
Medium-Duty Commercial Vehicles	3,427	N/A
Light-Duty Commercial Vehicles	858	N/A
All Used Commercial Vehicles	N/A	1,814

For the full year 2025 outlook, Rush Enterprises anticipated selling between 14,500 to 16,000 new Class 8 trucks in the U.S. and approximately 500 additional new Class 8 trucks in Canada. For Class 4 through 7, the anticipation was 14,500 to 15,500 new units in the U.S. and approximately 550 in Canada.

Strategic acquisitions to expand geographic footprint and franchises remain a core activity, though the most recent major reported transaction was in late 2021. The company's overall strategy involves disciplined investment to enhance its network. The capital deployment plan for 2025 included plans to purchase or lease commercial vehicles worth $200 million to $250 million for its leasing operations.

• Representing truck and bus manufacturers including Peterbilt, International, Hino, Isuzu, Ford, IC Bus, and Blue Bird.
• Operating 60 PacLease and Idealease franchises as of Q1 2025.
• Planning capital expenditures of $35 million to $40 million for recurring items in 2025.
• Focusing on expanding its portfolio of Aftermarket Products and Services.

Rush Enterprises, Inc. (RUSHB) - Canvas Business Model: Key Resources

The foundation of Rush Enterprises, Inc.'s business model rests on tangible and intangible assets that create significant barriers to entry and support its integrated service offering.

The physical footprint is anchored by an extensive network of over 155 Rush Truck Centers locations across 23 states and Ontario, Canada, providing broad geographic coverage for sales, service, and parts.

A critical intangible asset is the collection of exclusive manufacturer franchise agreements. These agreements grant Rush Enterprises, Inc. the right to represent major truck and bus manufacturers, including Peterbilt, International, Hino, Isuzu, Ford, Dennis Eagle, IC Bus, and Blue Bird.

The leasing and rental segment is supported by a large, modernized lease and rental fleet, which stood at over 10,000 trucks in the third quarter of 2025. This fleet supports a consistent revenue stream, with lease and rental revenue in Q3 2025 reaching $93.3 million.

Human capital is a key resource, specifically the highly skilled technician base and specialized aftermarket sales force. For instance, the company's aftermarket support includes a base of 650 mobile service technicians. The aftermarket products and services segment generated gross profit of approximately 63.7% of the Company's total gross profit in the third quarter of 2025, with parts, service, and collision center revenues totaling $642.7 million.

The strong balance sheet and capital position allow for continuous investment. As of the third quarter of 2025, Rush Enterprises, Inc. reported gross revenues of $1.881 billion and net income of $66.7 million for the quarter. Furthermore, the company demonstrated capital deployment confidence in December 2025 by approving a new stock repurchase program authorizing the repurchase of up to an aggregate of $150 million of its common stock, following a prior program that was increased to $200 million in May 2025.

Here's a quick look at the quantitative scale of these key resources as of late 2025:

Resource Category	Specific Metric	Value / Amount
Physical Network Size	Rush Truck Centers Locations (Approximate)	Over 155
Leasing & Rental Fleet	Trucks in Fleet (Q3 2025)	Over 10,000
Aftermarket Human Capital	Mobile Service Technicians	650
Financial Strength (Q3 2025)	Gross Revenues	$1.881 billion
Capital Deployment	New Stock Repurchase Authorization (Dec 2025)	$150 million

The company's operational depth is also supported by its various specialized brands:

• Rush Truck Centers
• Rush Bus Centers
• Rush Crane Systems
• Rush Refuse Systems
• Rush Towing Systems
• Rush Truck Leasing
• Rush Truck Insurance Services

Rush Enterprises, Inc. (RUSHB) - Canvas Business Model: Value Propositions

Integrated one-stop solution for commercial vehicle lifecycle needs.

• Sales of new and used commercial vehicles.
• Aftermarket parts, service, and collision center operations.
• Financing, insurance, leasing, and rental services.

North American network scale for consistent service and parts availability.

Rush Enterprises, Inc. operates the largest commercial vehicle dealership network in North America. This scale supports parts availability, evidenced by a parts inventory of $340 million in genuine OEM and aftermarket parts for all makes and models. The network includes:

• 143 locations in 23 states.
• 17 locations in Canada.

Full-service leasing to reduce customer operating costs and fleet age.

The leasing and rental segment, operating PacLease and Idealease franchises, provides stability, with Q3 2025 Lease and rental revenue reaching $93.3 million, an increase of 4.7% compared to Q3 2024. This operation manages a fleet of more than 10,000 trucks under its lease and rental agreements, with more than 2,200 trucks under contract maintenance agreements as of Q3 2025. This strategy is noted for decreasing customer fleet age and lowering operating costs.

Diversified product mix across heavy, medium, and light-duty trucks.

The business model captures sales across the commercial vehicle spectrum. For the quarter ended June 30, 2025, unit deliveries included:

Vehicle Type	Units Delivered (Q2 2025)
New Heavy-Duty Trucks	3,259
New Medium-Duty Commercial Vehicles	3,803
New Light-Duty Commercial Vehicles	703
Used Commercial Vehicles	1,715

Specialized vehicle up-fitting and alternative fuel solutions (CNG).

Rush Enterprises, Inc. supports emerging technologies through its investment in Cummins Clean Fuel Technologies, Inc., offering CNG fuel systems. The company has made facility upgrades and technician training investments to support these specialized vehicles. As of 2025, the network has more than 290 natural gas-certified technicians ready for service and repair.

Here's a quick look at the scale of the integrated model based on Q3 2025 performance:

Financial Metric	Amount (Q3 2025)
Gross Revenues	$1.881 billion
Aftermarket Products and Services Revenues	$642.7 million
Net Income	$66.7 million
Earnings Per Diluted Share	$0.83

Rush Enterprises, Inc. (RUSHB) - Canvas Business Model: Customer Relationships

You're looking at how Rush Enterprises, Inc. keeps its commercial vehicle customers locked in, which is key when the new Class 8 truck market is soft, as seen by the 11.0% year-over-year decrease in U.S. Class 8 sales in the third quarter of 2025, with 3,120 units delivered that quarter.

Dedicated account management for large fleet and vocational customers

Rush Enterprises, Inc. focuses on assigning dedicated resources to its largest customers, which is crucial given that vocational and public sector demand has been healthier than over-the-road demand. The company grew its aftermarket salesforce in the first quarter of 2025 specifically to transition more customers to an assigned account status. This dedicated approach supports the business segments that remain strong; for instance, in Q3 2025, aftermarket products and services accounted for 63.7% of the Company's total gross profit.

High-touch, long-term relationships via full-service maintenance contracts

The long-term stickiness comes from service agreements, especially through Rush Truck Leasing. As of Q3 2025, Rush Truck Leasing had more than 2,200 trucks under contract maintenance agreements, supporting a lease and rental fleet of over 10,000 trucks. This segment delivered record revenues of $93.3 million in Q3 2025, marking a 4.7% increase compared to Q3 2024. The focus on a modernized fleet within leasing also lowers operating costs for the customer, which helps secure these long-term service relationships.

Transactional sales for new and used truck purchases

While service builds the relationship, the initial transaction is still a core interaction. For context on the scale of these transactions, in the full year 2024, Rush Enterprises, Inc. sold 15,465 new Class 8 trucks and 13,935 new medium-duty commercial vehicles. Used commercial vehicle sales for that same year totaled 7,110 units. In Q3 2025 alone, the company delivered 3,120 new heavy-duty trucks in the U.S. and sold 1,814 used commercial vehicles. The company maintains a broad physical presence to facilitate these sales, operating 143 franchised locations across 23 states and 17 locations in Canada as of mid-2025.

Customer support through mobile service and Xpress services

Keeping the fleet running is paramount, and Rush Enterprises, Inc. supports this with specialized, rapid service offerings. The company highlights its commitment to strategic aftermarket initiatives like its planned maintenance, Xpress services, and mobile service offerings, which helped drive service and body shop revenues in late 2024. To support this, Rush Enterprises, Inc. offers more than 3,700 state-of-the-art service bays, staffed by over 2,850+ factory-trained technicians across the U.S. and Canada as of July 2025. These technicians provide on-the-road or at-customer-facility support.

Building trust through operational discipline and service excellence

Trust is quantified through consistent performance, even in a tough market. The absorption ratio, which measures service and body shop gross profit against fixed overhead, is a key metric here; the ratio stood at 129.3% in Q3 2025. This ratio was 135.5% in Q2 2025 and 128.6% in Q1 2025. Management explicitly cites operational discipline and expense management as reasons for confidence in returning capital to shareholders, such as the declared Q3 2025 cash dividend of $0.19 per share.

Here's a quick look at the scale of the aftermarket focus, which is central to customer retention:

Metric	Q3 2025 Value	Comparison Point
Aftermarket Revenue	$642.7 million	Up 1.5% year-over-year (Q3 2024: $633.0 million)
Aftermarket Gross Profit Contribution	63.7%	Up from 63.0% in Q2 2025
Service Bays	More than 3,700	Supported by over 2,850+ technicians
Absorption Ratio	129.3%	Down from 135.5% in Q2 2025

The company's strategy involves using its scale-with 17 International dealerships in 5 states added in 2021 and new locations in 2024-to deliver consistent service quality across its network.

Rush Enterprises, Inc. (RUSHB) - Canvas Business Model: Channels

Rush Truck Centers physical dealership locations across 23 US states and Ontario, Canada, form the primary physical touchpoint for sales and service. As of the third quarter of 2025 announcements, Rush Truck Centers operates more than 150 commercial vehicle dealerships in North America.

The scale of the physical and leasing channels can be seen in the following snapshot:

Channel Component	Metric	Latest Reported Number (as of late 2025)	Source Period
Rush Truck Centers	Total Locations	More than 150	Q3 2025
Rush Truck Centers	US States Covered	23	Q3 2025
Rush Truck Centers	Canadian Presence	Ontario, Canada	Q3 2025
Rush Truck Leasing	Total Fleet Size (Lease/Rental)	More than 10,000	Q2 2025
Rush Truck Leasing	Contract Maintenance Trucks	More than 2,000	Q2 2025
Rush Truck Leasing	Q2 2025 Revenue	$93.1 million	Q2 2025
Digital Channels	Q3 2025 Aftermarket/Service Revenue	$642.7 million	Q3 2025

Rush Truck Leasing division provides fleet and rental services, operating PacLease and Idealease franchises across the United States and Canada. As of the second quarter of 2025, the lease and rental fleet stood at more than 10,000 trucks.

Mobile service units provide on-site maintenance and repair capabilities, supporting the service offering which generated parts, service and collision center revenues of $642.7 million in the third quarter of 2025. The company supports this with more than 3,700 state-of-the-art service bays across the U.S. and Canada.

Digital platforms support customer interaction for parts and service scheduling. These include:

• Easy-to-use, e-commerce parts ordering interface.
• SERVICE CONNECT COMMUNICATION PORTAL for 24/7 online service communication.
• Visibility to real-time repair status.

The direct sales force targets specific customer types, as evidenced by the strength in sales to vocational and public sector customers helping to offset softness in other areas during the first quarter of 2025. The company sold 448 Class 5 through 7 commercial vehicles in Canada during the third quarter of 2025, partly due to a recent IC Bus franchise acquisition.

The parts inventory supporting these channels is substantial:

• $340 million in genuine OEM and aftermarket parts inventory.
• All-makes parts catalog with more than 16,000 popular products.

Finance: draft next quarter's cash flow projection by end of month.

Rush Enterprises, Inc. (RUSHB) - Canvas Business Model: Customer Segments

You're looking at the customer base for Rush Enterprises, Inc. as of late 2025, which is heavily reliant on commercial vehicle operators across several distinct categories.

Over-the-road (OTR) carriers represent the largest segment, but this group has been a source of near-term weakness. The ongoing freight recession and depressed freight rates have caused OTR carriers to delay vehicle acquisition and maintenance decisions throughout 2025. For the year ended December 31, 2024, this segment had an outsized impact, translating to weak demand for new Class 8 trucks.

Conversely, demand for new Class 8 trucks from other segments has provided a buffer. Specifically, demand from:

• Vocational customers (e.g., construction, refuse, energy, agriculture) remains healthy.
• Public sector and municipal fleets also show continued healthy demand for new Class 8 trucks.

Medium-duty commercial vehicle operators (Class 4-7) are another core group. While industry sales contracted in Q1 2025 compared to the prior year, Rush Enterprises, Inc. sales remained relatively steady, outperforming the industry in that quarter. The company delivered 3,803 new medium-duty commercial vehicles in the second quarter of 2025. Management projects medium-duty commercial vehicle sales to remain stable through the remainder of 2025.

Small to large fleet operators seeking full-service leasing are a segment showing growth. Rush Truck Leasing achieved record revenues in the third quarter of 2025, and the company expects lease and rental revenue to increase by approximately 6.0% in 2025.

Here's a look at the recent sales and leasing activity across key customer-facing metrics:

Metric	Period Ending September 30, 2025 (Q3 2025)	Period Ending June 30, 2025 (Q2 2025)	Full Year 2024
New Class 8 Trucks Sold (U.S.)	3,120 units	3,178 units	15,465 units
New Class 4-7 Commercial Vehicles Sold (U.S.)	Not explicitly stated for Q3 2025 U.S. only	3,626 units	13,935 units
Used Commercial Vehicles Sold	1,814 units	1,715 units	7,110 units
Rush Truck Leasing Revenue	$93.3 million	Not explicitly stated for Q2 2025	Not explicitly stated for full year 2024

The leasing and rental fleet itself is a key asset supporting this segment. Rush Truck Leasing operates more than 10,000 trucks in its lease and rental fleet.

For the third quarter of 2025, the company delivered 3,215 new heavy-duty trucks and 3,427 new medium-duty commercial vehicles.

Finance: draft 13-week cash view by Friday.

Rush Enterprises, Inc. (RUSHB) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive the operations for Rush Enterprises, Inc. as of late 2025. For a massive dealership network, the costs are heavily weighted toward inventory acquisition and the people who sell and service those trucks. Honestly, managing the cost of capital for that inventory is a constant balancing act.

Cost of Goods Sold (COGS) for New/Used Trucks and Parts Inventory

The largest component of cost structure is the cost associated with the vehicles and parts sold. For the full year ended December 31, 2024, the Total Cost of Revenue for Rush Enterprises, Inc. was approximately $6,273 million. This massive figure directly reflects the cost of the commercial vehicles and the inventory held for parts and service operations.

Here's a breakdown of the major components contributing to the cost of products sold for the year ended December 31, 2024 (in thousands):

Cost Component	Amount (USD Thousands)	Approximate USD Millions
New and used commercial vehicle sales cost	4,426,292	4,426.3
Parts and service sales cost	1,591,510	1,591.5
Lease and rental cost	255,528	255.5

Significant Personnel Costs for Technicians and Sales Staff

The people who keep the trucks running and those who close the deals represent a substantial fixed and variable cost. While direct personnel costs are embedded within other line items, the Selling, General & Admin Expense (SG&A) for the full year 2024 was $996 million. This covers much of the non-direct labor costs associated with running the sales and service operations across the network.

The overall overhead for the entire operation, which includes personnel, is reflected in the Total Operating Expenses for 2024, which totaled $1,063 million. You can see the absorption ratio, a key metric for service department efficiency, was 132.2% for the full year 2024.

Capital Expenditures for Leasing Fleet Additions

Maintaining and growing the lease fleet is a capital-intensive activity. For 2025, management has planned capital expenditures for leasing fleet additions in the range of $200 million to $250 million. [cite: User provided range] This investment aims to keep the fleet modern; for example, in the second half of 2024, the company replaced approximately 1,500 units in its leasing fleet. As of the third quarter of 2025, Rush Truck Leasing operates with more than 10,000 trucks in its lease and rental fleet.

Operating Expenses for the Defintely Large Dealership Network

Operating a large network means significant recurring costs for facilities, utilities, insurance, and general overhead. The Total Operating Expenses for the year ended December 31, 2024, stood at $1,063 million. This covers the cost of running dozens of physical locations.

Key operating expense metrics from recent periods include:

• Selling, General & Admin Expense (2024 Annual): $996 million.
• Depreciation Expense (2024 Annual): $69 million.
• Lease and rental revenue in Q3 2025 was $93.3 million.

Interest Expense on Floor Plan Financing and Long-Term Debt

Financing inventory is a major cost driver. The Interest Expense for the full year 2024 was $72 million. This expense is primarily driven by the Floor Plan Notes Payable (FPNP) used to finance new and used inventory, which management views as an interest-bearing accounts payable. The company has the capacity to finance its entire lease and rental fleet, but may only partially finance it based on business conditions.

To give you context on the debt structure that drives this expense, here are some figures from the end of 2023:

• Floor plan notes payable (as of Dec 31, 2023): $1,125,373 thousand (or $1.13 billion).
• Long-term debt, net of current maturities (as of Dec 31, 2023): $245,277 thousand (or $245.3 million).

Finance: draft 13-week cash view by Friday.

Rush Enterprises, Inc. (RUSHB) - Canvas Business Model: Revenue Streams

You're looking at the core ways Rush Enterprises, Inc. brings in cash as of late 2025. It's a mix, but the service side is definitely carrying a heavy load right now.

Aftermarket parts and service sales accounted for approximately 63.7% of the Company's total gross profit in the third quarter of 2025. This segment, which covers parts, service, and collision center work, generated revenues totaling $642.7 million in Q3 2025, showing a 1.5% increase compared to the third quarter of 2024. This resilience is key when new truck sales are choppy. The dealership operations also use a metric called the absorption ratio, which was 129.3% in Q3 2025.

New and used commercial vehicle sales cover the heavy, medium, and light-duty spectrum. Honestly, the new truck market, especially for Class 8, faced challenging conditions in Q3 2025 due to depressed freight rates and regulatory uncertainty. Still, the company saw modest gains in light-duty vehicle sales. Used truck sales remained a relatively stable component.

Leasing and rental income provides a more predictable stream. For the third quarter of 2025, Rush Truck Leasing brought in revenue of $93.3 million, which was up 4.7% year-over-year. Rush Truck Leasing operates franchises like PacLease and Idealease across the U.S. and Canada, managing more than 10,000 trucks in its lease and rental fleet.

Financial services revenue is the fourth major pillar, covering the necessary add-ons for customers. This includes:

• Financing arrangements for vehicle purchases.
• Insurance products offered at the point of sale.
• Warranty products that extend coverage.

The trailing twelve-month revenue as of Q3 2025 stood at $7.67 billion. That's the total top-line figure covering the four quarters leading up to September 30, 2025, representing a -1.95% change year-over-year.

Here's a quick look at the Q3 2025 financial snapshot:

Metric	Amount/Value
Total Revenue (Q3 2025)	$1.881 billion
Net Income (Q3 2025)	$66.7 million
Earnings Per Diluted Share (Q3 2025)	$0.83
Cash Dividend Declared (Q3 2025)	$0.19 per share

To be fair, the Q3 2025 total revenue of $1.881 billion was slightly down compared to the $1.896 billion reported in the third quarter of 2024, but it did exceed analyst revenue estimates.

Finance: draft 13-week cash view by Friday.