[RumbleOn Q1 2025 Financial Results](index=1&type=section&id=RumbleOn%20Reports%20First%20Quarter%202025%20Financial%20Results) [Key First Quarter 2025 Highlights](index=1&type=section&id=Key%20First%20Quarter%202025%20Highlights) RumbleOn's Q1 2025 saw revenue decline 20.5% to $244.7 million, with net loss improving and SG&A down 17.3% - CEO Michael Quartieri acknowledged a challenging consumer environment but highlighted the team's progress on turnaround initiatives[4](index=4&type=chunk) Q1 2025 Financial Summary (vs. Q1 2024) | ($ 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)% | | **Adjusted SG&A** | $57.5 | $72.6 | (20.8)% | | **Operating Income** | $3.8 | $5.2 | (26.9)% | | **Net Loss** | $(9.7) | $(10.3) | 5.8% | | **Adjusted EBITDA** | $7.0 | $7.7 | (9.1)% | - Key operational and financial activities in Q1 2025 include: - Revenue decrease driven by a **3,399 unit decline** in powersports and an **$8.8 million decline** in vehicle transportation services - SG&A expenses reduced by **$12.8 million** - Operating cash flow shifted to an outflow of **$6.9 million** from an inflow of **$17.0 million** in Q1 2024 - Repaid **$38.8 million** of 6.75% convertible senior notes at maturity[7](index=7&type=chunk) [Segment Results](index=2&type=section&id=First%20Quarter%202025%20%E2%80%94%20Segment%20Results) Powersports revenue declined 18.5% due to lower unit sales, though GPU improved; Vehicle Transportation Services revenue plummeted 61.5% Powersports Segment Performance - Q1 2025 vs Q1 2024 | ($ in millions, except per unit) | 2025 | 2024 | YOY Change | | :--- | :--- | :--- | :--- | | **Total Retail Unit Sales** | 12,320 | 15,508 | (20.6)% | | **Total Powersports Revenue** | $239.2 | $293.5 | (18.5)% | | **Total Powersports Gross Profit** | $66.1 | $79.1 | (16.4)% | | **Powersports GPU** | $5,365 | $5,099 | 5.2% | Vehicle Transportation Services Segment Performance - Q1 2025 vs Q1 2024 | ($ in millions) | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | **Vehicles Transported ()** | 8,625 | 24,637 | (65.0)% | | **Revenue** | $5.5 | $14.3 | (61.5)% | | **Gross Profit** | $1.1 | $3.5 | (68.6)% | [Balance Sheet, Liquidity and Cash Flow](index=3&type=section&id=Balance%20Sheet%2C%20Liquidity%20and%20Cash%20Flow) RumbleOn's liquidity stood at $171.4 million as of March 31, 2025, with an operating cash outflow of $6.9 million and non-vehicle net debt at $188.2 million - Total Available Liquidity was **$171.4 million** as of March 31, 2025, which includes total cash and availability under floorplan credit facilities[11](index=11&type=chunk) - Operating cash outflow was **$6.9 million** for Q1 2025, compared to an inflow of **$17.0 million** in Q1 2024. The 2024 period benefited from proceeds from the sale of the Company's loans receivable portfolio[11](index=11&type=chunk) Key Liquidity and Debt Metrics | ($ in millions) | Mar. 31, 2025 | Dec. 31, 2024 | Change | | :--- | :--- | :--- | :--- | | **Cash (unrestricted)** | $41.1 | $85.3 | (51.8)% | | **Non-Vehicle Net Debt** | $188.2 | $182.1 | 3.3% | [Financial Statements](index=5&type=section&id=Financial%20Statements) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 revenue declined to $244.7 million, while net loss improved to $9.7 million, or ($0.26) per share, from $10.3 million in Q1 2024 Q1 2025 Statement of Operations (in millions, except per share) | | 2025 | 2024 | | :--- | :--- | :--- | | **Total revenue** | $244.7 | $307.8 | | **Gross profit** | $67.2 | $82.6 | | **Operating income** | $3.8 | $5.2 | | **Net loss** | $(9.7) | $(10.3) | | **Net loss per share** | $(0.26) | $(0.29) | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were $738.9 million, liabilities $712.0 million, with cash decreasing to $41.1 million and inventory increasing Balance Sheet Summary (in millions) | | Mar. 31, 2025 | Dec. 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $358.3 | $371.4 | | **Total assets** | $738.9 | $755.2 | | **Total current liabilities** | $315.6 | $324.4 | | **Total liabilities** | $712.0 | $718.5 | | **Total stockholders' equity** | $26.9 | $36.7 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 operating activities resulted in a $6.9 million net cash outflow, with total cash and restricted cash decreasing by $40.5 million due to debt repayment Cash Flow Summary - Three Months Ended Mar. 31 (in millions) | | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash from operating activities** | $(6.9) | $17.0 | | **Net cash used in investing activities** | $(0.5) | $(0.7) | | **Net cash used in financing activities** | $(33.1) | $(29.9) | | **NET CHANGE IN CASH** | $(40.5) | $(13.6) | | **Cash and restricted cash at end of period** | $56.2 | $63.4 | [Non-GAAP Measures](index=8&type=section&id=Non-GAAP%20Measures) This section defines and reconciles key non-GAAP financial metrics like Adjusted EBITDA, Free Cash Flow, Non-Vehicle Net Debt, and Adjusted SG&A, used to assess core operational performance - The Company uses non-GAAP financial measures like **EBITDA**, **Adjusted EBITDA**, **Free Cash Flow**, **Non-Vehicle Net Debt**, and **Adjusted SG&A** for financial and operational decision-making and to evaluate period-to-period comparisons[16](index=16&type=chunk) [EBITDA and Adjusted EBITDA](index=8&type=section&id=EBITDA%20and%20Adjusted%20EBITDA) Adjusted EBITDA for Q1 2025 was $7.0 million, down from $7.7 million in Q1 2024, calculated by adjusting net loss for non-operational and non-cash items Reconciliation of Net Loss to Adjusted EBITDA (in millions) | | First Quarter 2025 | First Quarter 2024 | | :--- | :--- | :--- | | **Net loss (GAAP)** | $(9.7) | $(10.3) | | **EBITDA (non-GAAP)** | $6.3 | $9.0 | | **Adjusted EBITDA (non-GAAP)** | $7.0 | $7.7 | [Free Cash Flow](index=9&type=section&id=Free%20Cash%20Flow) Free Cash Flow was negative $7.4 million in Q1 2025, a significant decrease from the positive $16.4 million generated in Q1 2024 Reconciliation to Free Cash Flow (in millions) | | First Quarter 2025 | First Quarter 2024 | | :--- | :--- | :--- | | **Cash flows from operating activities (GAAP)** | $(6.9) | $17.0 | | **Capital expenditures** | $(0.5) | $(0.6) | | **Free Cash Flow (non-GAAP)** | $(7.4) | $16.4 | [Non-Vehicle Net Debt](index=9&type=section&id=Non-Vehicle%20Net%20Debt) Non-Vehicle Net Debt increased to $188.2 million as of March 31, 2025, from $182.1 million at year-end 2024, excluding vehicle floor plan debt Reconciliation to Non-Vehicle Net Debt (in millions) | | As of Mar. 31, 2025 | As of Dec. 31, 2024 | | :--- | :--- | :--- | | **Long-term debt, including current maturities (GAAP)** | $215.5 | $251.1 | | **Less: unrestricted cash** | $(41.1) | $(85.3) | | **Non-Vehicle Net Debt (non-GAAP)** | $188.2 | $182.1 | [Adjusted SG&A](index=10&type=section&id=Adjusted%20SG%26A) Adjusted SG&A expenses decreased 20.8% to $57.5 million in Q1 2025, improving to 85.6% of gross profit from 87.9% Reconciliation of SG&A to Adjusted SG&A (in millions) | | First Quarter 2025 | First Quarter 2024 | | :--- | :--- | :--- | | **SG&A (GAAP)** | $61.1 | $73.9 | | **Adjusted SG&A (non-GAAP)** | $57.5 | $72.6 | | **Adjusted SG&A as % of Gross Profit** | 85.6% | 87.9% | [Supplementary Data](index=11&type=section&id=Supplementary%20Data) [Key Term Loan Credit Agreement Covenant Compliance](index=11&type=section&id=Key%20Term%20Loan%20Credit%20Agreement%20Covenant%20Compliance) As of March 31, 2025, RumbleOn was in compliance with key term loan covenants, with Consolidated Total Net Leverage Ratio at 4.7x, below the 9.5x maximum Covenant Compliance as of March 31, 2025 | | Actual | Maximum Allowed | | :--- | :--- | :--- | | **Consolidated Total Net Leverage Ratio** | 4.7x | 9.5x | | **Consolidated Senior Secured Net Leverage Ratio** | 4.7x | 9.0x |

Core Insights - RumbleOn, Inc. reported a significant decline in revenue and unit sales in the first quarter of 2025 compared to the same period in 2024, indicating challenges in the powersports segment [2][4][6] - The company is focused on turnaround initiatives despite the decline, with management expressing optimism about future performance [3][6] Financial Performance - Revenue for Q1 2025 was $244.7 million, down 20.5% from $307.8 million in Q1 2024 [4][15] - Gross profit decreased by 18.6% to $67.2 million from $82.6 million year-over-year [4][15] - Selling, general & administrative expenses (SG&A) were reduced to $61.1 million, a decrease of 17.3% from $73.9 million [4][15] - Adjusted EBITDA fell to $7.0 million, down 9.1% from $7.7 million in the previous year [4][19] Unit Sales and Segment Performance - Total retail unit sales in the powersports segment decreased by 20.6%, with new powersports units down 23.7% and pre-owned units down 13.9% [7][8] - Vehicle transportation services segment revenue dropped 61.5% to $5.5 million, with vehicles transported decreasing by 65.0% [8][15] Cash Flow and Liquidity - Operating cash flow was negative at $(6.9) million, compared to positive inflows of $17.0 million in Q1 2024 [4][9] - The company ended the quarter with total cash of $56.2 million, including restricted cash, and reported non-vehicle net debt of $188.2 million [9][22] Balance Sheet Highlights - Long-term debt, including current maturities, decreased to $215.5 million from $251.1 million [4][23] - Total assets as of March 31, 2025, were $738.9 million, down from $755.2 million at the end of 2024 [16][23] Management Commentary - The CEO highlighted the team's efforts in navigating a challenging consumer environment and expressed confidence in the company's turnaround strategies [3][6]

Core Viewpoint - RumbleOn, Inc. is set to release its First Quarter 2025 operational and financial results on May 7, 2025, before market opening [1] Company Overview - RumbleOn operates through two segments: a powersports dealership group and vehicle transportation services via Wholesale Express, LLC [3] - The powersports business, under the RideNow brand, is claimed to be the largest in the U.S., offering a variety of new and pre-owned powersports vehicles and related products [3] - RumbleOn is a significant purchaser of pre-owned powersports vehicles, utilizing proprietary technology for direct consumer acquisitions [3] - The Express business provides asset-light transportation brokerage services, primarily facilitating automobile transport among dealerships and auctions across the U.S. [3] Upcoming Events - A conference call and webcast to discuss the operational and financial results will take place on May 7, 2025, at 7:00 a.m. Central Time [2][4] - The call will be hosted by Mike Quartieri, the Chief Executive Officer and Interim Chief Financial Officer [2]

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]

Core Insights - RumbleOn, Inc. reported financial results for Q4 and full year 2024, highlighting a focus on operational efficiency despite macroeconomic challenges [4][6][11] Financial Performance - Q4 2024 revenue was $269.6 million, a decrease of 13.4% from $311.2 million in Q4 2023 [5][6] - Full year 2024 revenue totaled $1,209.2 million, down 11.5% from $1,366.4 million in 2023 [5][6] - Q4 2024 net loss was $56.4 million, significantly improved from a net loss of $168.5 million in Q4 2023 [6][18] - Full year 2024 net loss was $78.6 million, compared to a net loss of $215.5 million in 2023 [6][18] - Adjusted EBITDA for Q4 2024 was $2.2 million, compared to a loss of $0.3 million in Q4 2023 [6][23] - Full year 2024 Adjusted EBITDA was $32.9 million, down 12.0% from $37.4 million in 2023 [6][23] Operational Highlights - The company reduced inventories by $106.9 million and floor plan notes payable by $81.4 million during 2024 [6][11] - Operating cash inflows for 2024 totaled $99.4 million, a significant turnaround from cash outflows of $38.9 million in 2023 [6][11] - The company fully repaid $38.8 million of convertible senior notes upon maturity in January 2025 [6][11] Segment Performance - In the Powersports segment, total retail unit sales decreased by 9.3% year-over-year, with new powersports sales down 9.5% and pre-owned powersports sales down 8.8% [9][10] - Total Powersports revenue for Q4 2024 was $256.2 million, a decline of 14.1% from $298.2 million in Q4 2023 [9][10] - Vehicle Transportation Services revenue increased by 3.1% to $13.4 million in Q4 2024 [10] Balance Sheet and Liquidity - As of December 31, 2024, the company had $85.3 million in unrestricted cash, up 44.8% from $58.9 million in 2023 [11][20] - Long-term debt decreased to $251.1 million from $274.3 million in 2023 [11][20] - Non-Vehicle Net Debt was reduced by $60.8 million to $182.1 million [6][27] Future Outlook - The CEO expressed confidence in the company's ability to strengthen profitability in 2025 with the right inventory mix and operational plans [4]

Core Viewpoint - RumbleOn, Inc. is set to release its Fourth Quarter and Full Year 2024 operational and financial results on March 11, 2025, before market opening [1] Company Overview - RumbleOn operates through two segments: Powersports dealership group and Wholesale Express, LLC, which focuses on asset-light transportation services in the automotive industry [3] - The Powersports group is claimed to be the largest in the United States, offering a wide range of products and services including new and pre-owned vehicles, parts, apparel, and financing options [3] - RumbleOn is one of the largest purchasers of pre-owned powersports vehicles in the U.S., utilizing proprietary technology to acquire vehicles directly from consumers [3] Upcoming Events - A conference call and webcast will be held on March 11, 2025, at 7:00 a.m. Central Time (8:00 a.m. Eastern Time) to discuss the operational and financial results [2][4] - The call will be hosted by the CEO Mike Quartieri and CFO Tiffany Kice [2]

Leadership Changes - Michael Quartieri, Chairman of the Board, has been appointed as Chief Executive Officer [5][6] - Cameron Tkach, Vice President of Dealership Operations, has been promoted to Executive Vice President and Chief Operating Officer [5][6] - Becca Polak, Chair of the Compensation Committee, has been named Vice Chairman and Lead Independent Director [5][6] - Michael Kennedy is no longer Chief Executive Officer or a member of the Board of Directors [5] Executive Profiles - Michael Quartieri has significant leadership and strategic planning experience, strong financial acumen, and corporate governance expertise [1] - Cameron Tkach has over 15 years of experience in the powersports industry, with a background in operational roles such as Sales Manager, Finance Manager, General Manager, and Operations Director [1] - Becca Polak is a seasoned executive and board advisor with a record of driving business strategy, execution, and technology transformation [1] Company Overview - RumbleOn operates through two segments: Powersports dealership group and Wholesale Express, LLC, an asset-light transportation services provider [4] - The Powersports group is the largest in the US by revenue, unit sales, and dealership locations, offering over 500 franchises representing 50 brands [4] - The company is the largest purchaser of pre-owned powersports vehicles in the US, utilizing RideNow's Cash Offer to acquire vehicles directly from consumers [4] Strategic Focus - Michael Quartieri emphasizes driving growth, improving profitability, and producing strong cash flow following the payoff of convertible notes [1] - Cameron Tkach aims to leverage his operational and strategic expertise to achieve operational excellence and market leadership in the powersports industry [1] - The leadership team is focused on accelerating RumbleOn's success through strategic vision and execution [1]

Core Points - RumbleOn, Inc. announced the final results of its $10 million fully backstopped registered equity rights offering, which resulted in subscriptions for 2,043,011 shares, approximately 85% of the shares offered at a price of $4.18 per share [1] - The Standby Purchaser, Stone House Capital Management, will purchase 349,333 unsubscribed shares for approximately $1.5 million [2] - The net proceeds from the Rights Offering and Backstop Private Placement are estimated to be around $9 million, intended for general corporate purposes, including repayment of convertible senior promissory notes [4] Summary by Sections Rights Offering Results - The subscription period for the Rights Offering expired on December 12, 2024, with 2,043,011 shares subscribed, representing about 85% of the total offered [1] - Shares are expected to be issued to participating stockholders on or about December 17, 2024 [1] Backstop Private Placement - Stone House Capital Management will acquire 349,333 shares that were not subscribed for in the Rights Offering, including 116,555 shares it was entitled to subscribe for [2] - The Backstop Private Placement is expected to close on December 19, 2024 [3] Financial Implications - The estimated net proceeds from both the Rights Offering and Backstop Private Placement are approximately $9 million [4] - Proceeds will be used for general corporate purposes, including the repayment of convertible senior promissory notes due January 1, 2025, and to meet additional capital financing obligations [4] Share Structure - Following the completion of the offerings, the Company expects to have approximately 37,713,298 shares of Class B common stock outstanding [5] Company Overview - RumbleOn operates through two segments: Powersports dealership group and Wholesale Express, LLC, focusing on the automotive industry [8] - It is the largest powersports retail group in the U.S., offering over 500 franchises and a wide selection of new and pre-owned products [8]