Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-38248 RumbleOn, Inc. (Exact name of registrant as specified in its charter) Nevada 46-3951329 (State or other j ...

RumbleON (RMBL) Q1 2025 Earnings Call May 07, 2025 08:00 AM ET Company Participants Elliot Wagner - Vice President of FinanceMichael Quartieri - CEO, Interim CFO & Chairman of the BoardEric Wold - Executive Director, Equity Research Conference Call Participants Craig Kennison - Director of Research Operations & Senior Research Analyst Operator Greetings, and welcome to the RumbleOn, Inc. First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. A br ...

RumbleON (RMBL) Q1 2025 Earnings Call May 07, 2025 08:00 AM ET Company Participants Elliot Wagner - Vice President of FinanceMichael Quartieri - CEO, Interim CFO & Chairman of the BoardEric Wold - Executive Director, Equity Research Conference Call Participants Craig Kennison - Director of Research Operations & Senior Research Analyst Operator Greetings, and welcome to the RumbleOn, Inc. First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. A br ...

RumbleON (RMBL) Q1 2025 Earnings Call May 07, 2025 09:00 AM ET Speaker0 Greetings, and welcome to the RumbleOn, Inc. First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Olliot Wagner, Vice President of Finance. Thank you. Please go ahead. Speaker1 Thank you, operator. Good morn ...

RumbleOn Reports First Quarter 2025 Financial Results IRVING, Texas – May 7, 2025 – RumbleOn, Inc. (NASDAQ: RMBL), the "Company" or "RumbleOn", today announced results for the first quarter ended March 31, 2025. Exhibit 99.1 Key First Quarter 2025 Highlights (Compared to First Quarter 2024): "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 turnaroun ...

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. Key First Quarter 2025 Highlights (Compared to First Quarter 2024): | | First Quarter | | | | | | | --- | --- | --- | --- | --- | --- | --- | | ($ in millions) | 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) | % | | ...

IRVING, Texas, April 30, 2025 /PRNewswire/ -- RumbleOn, Inc. (NASDAQ: RMBL) (the "Company" or "RumbleOn"), today announced that it will release its First Quarter 2025 operational and financial results before the market opens on Wednesday, May 7, 2025.The Company has scheduled a conference call and webcast on the same day at 7:00 a.m. Central Time (8:00 a.m. Eastern Time) to discuss its operational and financial results. The call will be hosted by Mike Quartieri, Chief Executive Officer and Interim Chief Fin ...

Business Operations - As of December 31, 2024, RumbleOn operated a total of 56 powersports dealerships across 13 states in the U.S.[12] - The company has a workforce of 1,928 full-time and 36 part-time employees as of December 31, 2024[25]. - RumbleOn's proprietary RideNow Cash Offer technology allows for the acquisition of high-quality pre-owned powersports vehicles directly from consumers, enhancing inventory and customer experience[22]. - The powersports retail marketplace in the U.S. is highly fragmented, with competition from traditional dealers and independent pre-owned dealers[16]. - The company aims to grow its powersports segment through both organic growth and strategic acquisitions, focusing on adding new customers and brands[23]. - RumbleOn's operations are subject to various federal and state regulations, which could impact business continuity and result in compliance costs[28]. - The company relies heavily on marketing and advertising to attract customers, but there is a risk that these efforts may not be profitable if they do not lead to sufficient user acquisition[42]. - The company is dependent on relationships with vehicle manufacturers, which can impose restrictions that may adversely affect operations and growth strategies[47]. - The company has experienced increases in labor, fuel, and service costs due to inflation, which could have a material adverse effect on its financial condition[61]. - The company does not have a material cost advantage over other retailers in purchasing new powersports vehicles, relying on advertising and local branding for sales[66]. - The proprietary RideNow Cash Offer technology is seen as a competitive advantage, but low barriers to entry in the online marketplace may lead to increased competition[67]. - The company benefits from sales incentives and promotional programs from manufacturers, and any reduction in these programs could adversely affect sales volume and financial results[71]. - The company relies heavily on third parties for product and service delivery, and a cybersecurity incident at a key supplier could adversely affect its operations[111]. Financial Performance - Total revenue for 2024 was $1,209.2 million, a decrease of $157.2 million or 11.5% compared to $1,366.4 million in 2023[145]. - Revenue from powersports vehicles declined by $108.8 million or 11.4%, totaling $842.6 million in 2024[145]. - Gross profit decreased by $45.6 million, totaling $314.3 million in 2024, primarily due to lower revenue from powersports vehicles and ancillary products[145]. - The operating loss improved to $(14.7) million in 2024, a positive change of $54.8 million or 78.8% compared to $(69.5) million in 2023[145]. - The company reported a loss from continuing operations of $(78.6) million in 2024, a reduction of $135.8 million or 63.3% from $(214.4) million in 2023[145]. - The vehicle transportation services segment generated $58.0 million in revenue, an increase of $1.8 million or 3.2% from $56.2 million in 2023[145]. - SG&A expenses decreased by $71.9 million or 20.7%, totaling $275.4 million in 2024[145]. - Total revenue for the powersports segment decreased by $159.0 million, with 7,674 fewer vehicles sold compared to the previous year[151]. - Average revenue per vehicle sold via retail channels was $12,884 higher than those sold via wholesale channels, but overall average revenue per vehicle decreased by $367[151]. - Gross profit for powersports vehicles decreased by $45.2 million, influenced by macroeconomic conditions and included a $12.6 million write-down of inventory[152]. - Vehicle transportation services revenue increased by $1.8 million, driven by a 6.2% increase in the number of vehicles transported[153]. Debt and Cash Flow - The company has incurred significant debt, which limits its flexibility to respond to changing business conditions and may adversely affect its ability to finance operations and pursue acquisitions[54]. - As of June 30, 2024, the company was not in compliance with certain leverage ratio financial covenants, leading to amendments in its Credit Agreement to revise ratios and increase liquidity requirements to $30.0 million[56]. - Total debt decreased from $563.8 million in 2023 to $461.0 million in 2024, a reduction of $102.8 million[168]. - Net cash provided by operating activities improved by $138.3 million, increasing from a cash outflow of $38.9 million in 2023 to a cash inflow of $99.4 million in 2024[169]. - Cash flows from investing activities shifted from a net outflow of $19.1 million in 2023 to a net inflow of $0.9 million in 2024, a change of $20.0 million[171]. - Net cash used in financing activities changed from a cash inflow of $78.2 million in 2023 to a cash outflow of $80.6 million in 2024, a decrease of $158.8 million[172]. - The company repaid $38.8 million in principal plus accrued interest under its 6.75% convertible senior notes on January 2, 2025[134]. Internal Controls and Compliance - The company has identified material weaknesses in its internal control over financial reporting, which could impact the accuracy of financial statements[39]. - A material weakness in internal control over financial reporting was identified, particularly in user access and segregation of duties related to key financial systems as of December 31, 2024[196]. - Independent auditors BDO USA, P.C. issued an adverse opinion on the effectiveness of internal control over financial reporting due to the identified material weakness[197]. - Management plans to enhance processes for reviewing and provisioning access to key financial systems and ensure appropriate segregation of duties[198]. - Additional accounting resources with required technical expertise have been hired to address the material weakness[199]. - The review and approval process for intercompany transactions and account reconciliations has been enhanced[199]. - Management will monitor the effectiveness of remedial measures and controls, which will not be considered remediated until they operate effectively for a sufficient period[201]. - No changes in internal control over financial reporting were identified that materially affected the control environment during the quarter ended December 31, 2024[202]. Market and Economic Conditions - The powersports industry is seasonal, with sales peaking in spring and summer, affecting quarterly financial results[27]. - The powersports industry is sensitive to economic conditions, with inflation impacting costs and consumer demand, which could adversely affect the company's financial performance[61]. - Retail powersports sales are cyclical, historically experiencing downturns due to oversupply and weak demand, potentially leading to reduced revenue per vehicle sold and margins[62]. - Changes in trade policies, including tariffs, may adversely impact the company's business and profitability, particularly with inventory sourced from countries like Mexico, Canada, and China[63]. - The powersports retail and service industry is highly competitive, with pressure from both existing and new companies affecting business and operating results[64]. - Cybersecurity risks and potential breaches of IT systems could materially impact the company's operations and financial condition[81]. - Changes in state laws protecting powersports retailers could lead to increased susceptibility to termination or non-renewal of dealer agreements, adversely affecting business operations[87]. Corporate Governance - The company has never declared or paid any cash dividends on its common stock and intends to reinvest earnings into business development and expansion[103]. - As of March 1, 2025, three stockholders beneficially own approximately 54.8% of the company's voting power, potentially influencing major corporate actions[100]. - The market price of the company's Class B common stock has experienced significant volatility, influenced by external factors beyond its control[101]. - The company is currently subject to reduced reporting requirements as a "smaller reporting company," which may affect the attractiveness of its common stock to investors[104]. - The company faces various legal proceedings that could require significant expenditures and adversely impact its financial condition if outcomes are unfavorable[98]. - The company maintains cybersecurity insurance, but costs related to cybersecurity threats may not be fully covered, posing a risk to its financial stability[112].

Financial Data and Key Metrics Changes - In Q4 2024, the company generated revenue of $269.6 million, down 13.4% year-over-year, while adjusted EBITDA was $2.2 million, an improvement from a slight loss in the same quarter last year [20][27] - Total company revenue for the full year was approximately $1.2 billion, down 11.5% year-over-year, and adjusted EBITDA was $32.9 million, down 12% [27] Business Line Data and Key Metrics Changes - The Powersports Dealership Group retailed approximately 14,100 major units in Q4 2024, down 9.3% year-over-year, with new unit sales down 9.5% and pre-owned unit sales down 8.8% [22] - Gross margins for new unit sales were 10.8%, down from 13.2% in the same quarter last year, while pre-owned gross margins improved to 9.8% from negative 10.3% [23] - Revenue from the Powersports dealership group was $256.2 million, down 14.1% year-over-year [25] Market Data and Key Metrics Changes - The company has successfully reduced new inventories by over $80 million from 2023 to 2024, aligning inventory levels with current market conditions [13][22] - The asset-light vehicle transportation services segment, Wholesale Express, saw a revenue increase of 3.1% year-over-year, although gross profit decreased by 2.9% [27] Company Strategy and Development Direction - The new CEO emphasized a focus on driving profitability, growing the company, and creating shareholder value, moving away from the previous Vision 2026 plan [16][19] - The company aims to enhance revenue, optimize costs, and grow EBITDA and free cash flow, with plans for both acquisitions and organic growth [11][12] Management's Comments on Operating Environment and Future Outlook - The management acknowledged a challenging macro and industry environment but expressed confidence in the team's performance and the company's ability to emerge stronger [12] - The CEO highlighted the dynamic global tariff landscape and its potential impact on product affordability and customer demand [17] Other Important Information - The company ended the quarter with $96.7 million in total cash and $182.1 million in non-vehicle debt, benefiting from a $30 million capital raise [29] - Cash inflows from operating activities were $99.4 million for the year, a significant improvement from cash outflows of $38.9 million in the previous year [30] Q&A Session Summary Question: What is the company's exposure to tariffs and how will it handle potential cost increases? - The CEO identified Polaris, BRP, and Harley-Davidson as the top three OEMs, which account for 60% to 65% of sales, and noted the uncertainty in quantifying the tariff impact [35][36] Question: Is there any indication of a slowdown in business due to consumer confidence issues? - The CEO stated that while the company does not provide inter-quarter commentary, it is facing similar consumer challenges as others in the industry [39] Question: How does the company view its inventory levels compared to the rest of the industry? - The CEO expressed confidence in the company's inventory management but acknowledged that parts inventory might still be slightly high [43]

Revenue Performance - Fourth Quarter 2024 revenue was $269.6 million, a decrease of 13.4% compared to $311.2 million in Q4 2023[5] - Full Year 2024 revenue totaled $1,209.2 million, down 11.5% from $1,366.4 million in 2023[5] - Total retail unit sales in Q4 2024 were 14,142, a decrease of 9.3% from 15,596 in Q4 2023[9] - Total revenue for Q4 2024 was $269.6 million, a decrease of 13.4% from $311.2 million in Q4 2023[20] Net Loss and Profitability - Net loss for Q4 2024 was $56.4 million, significantly improved from a net loss of $168.5 million in Q4 2023, which included $39.3 million in intangible asset impairment charges[5] - The net loss for Q4 2024 was $56.4 million, compared to a net loss of $168.5 million in Q4 2023, indicating a significant improvement[20] - Adjusted EBITDA for Q4 2024 was $2.2 million, compared to a loss of $0.3 million in Q4 2023[5] - Adjusted EBITDA for the full year 2024 was $32.9 million, compared to $37.4 million in 2023, reflecting a decrease of 11.9%[28] Expenses and Cost Management - Selling, general & administrative expenses (SG&A) decreased to $64.2 million in Q4 2024 from $81.7 million in Q4 2023, a reduction of 21.4%[5] - Adjusted SG&A for the full year 2024 was $270.0 million, down from $333.1 million in 2023, representing a significant reduction in operating expenses[38] - The SG&A as a percentage of Gross Profit improved to 85.9% in 2024 from 92.6% in 2023, indicating better cost management[38] - The company reported a significant reduction in litigation and non-recurring costs, contributing to the improved Adjusted SG&A figures[38] Cash Flow and Liquidity - Operating cash inflows for 2024 were $99.4 million, a significant increase from cash outflows of $38.9 million in 2023[6] - Cash (unrestricted) at the end of 2024 was $85.3 million, up 44.8% from $58.9 million at the end of 2023[6] - Cash and restricted cash at the end of Q4 2024 totaled $96.7 million, an increase from $77.0 million at the end of Q4 2023[24] - For the full year 2024, cash flows from operating activities were $99.4 million, compared to $(38.9) million in 2023, resulting in a Free Cash Flow of $97.4 million, up from $(52.6) million in the previous year[33] Debt and Financial Position - The company fully repaid $38.8 million of 6.75% convertible senior notes upon maturity in January 2025[5] - As of December 31, 2024, Non-Vehicle Net Debt was $182.1 million, a decrease from $242.9 million as of December 31, 2023, reflecting improved financial position[35] - The principal of long-term debt, including current maturities, decreased to $267.4 million as of December 31, 2024, from $301.8 million in 2023, reflecting debt reduction efforts[35] - Total liabilities decreased to $718.5 million in 2024 from $820.7 million in 2023, showing a reduction in financial obligations[22] Inventory and Asset Management - The company reduced inventories by $106.9 million and floor plan notes payable by $81.4 million during the year[5] - Total current assets decreased to $371.4 million in 2024 from $480.8 million in 2023, primarily due to a reduction in inventory[22] - Vehicle floor plan notes payable decreased to $209.9 million in 2024 from $291.3 million in 2023, indicating improved management of financing[22] - The company incurred impairment charges of $39.3 million in both Q4 2024 and 2023, reflecting ongoing challenges in asset valuation[28] Future Outlook - The company’s financial strategy focuses on enhancing liquidity and capital resources through improved Free Cash Flow generation[32] - Future outlook includes continued focus on cost management and operational efficiency to sustain financial improvements[38] - The Consolidated Total Net Leverage Ratio as of December 31, 2024, was 5.3x, well below the maximum allowed of 9.5x, demonstrating compliance with credit agreement covenants[41] - Capital expenditures for 2024 were $2.0 million, significantly lower than $13.7 million in 2023, indicating a more conservative investment approach[33]