RumbleOn(RMBL) - 2025 Q1 - Quarterly Results

RumbleOn Q1 2025 Financial Results Key First Quarter 2025 Highlights RumbleOn's Q1 2025 saw revenue decline 20.5% to $244.7 million, with net loss improving and SG&A down 17.3% - CEO Michael Quartieri acknowledged a challenging consumer environment but highlighted the team's progress on turnaround initiatives[4] Q1 2025 Financial Summary (vs. Q1 2024) | ($ 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 $38.8 million of 6.75% convertible senior notes at maturity[7] Segment Results Powersports revenue declined 18.5% due to lower unit sales, though GPU improved; Vehicle Transportation Services revenue plummeted 61.5% Powersports Segment Performance - Q1 2025 vs Q1 2024 | ($ 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 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] - Operating cash outflow was $6.9 million for Q1 2025, compared to an inflow of $17.0 million in Q1 2024. The 2024 period benefited from proceeds from the sale of the Company's loans receivable portfolio[11] Key Liquidity and Debt Metrics | ($ 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 Condensed Consolidated Statements of Operations 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 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 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 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] EBITDA and Adjusted EBITDA 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 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 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 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 Key Term Loan Credit Agreement Covenant Compliance 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 |