RumbleOn(RMBL) - 2025 Q3 - Quarterly Report

Revenue Performance - Total revenue for the third quarter of 2025 was $281.0 million, a decrease of 4.7% compared to $295.0 million in the same quarter of 2024[98]. - Powersports vehicle sales revenue decreased by 1.0% year-over-year to $204.3 million, while total revenue for the nine months ended September 30, 2025, was $825.6 million, down 12.1% from $939.6 million in the same period of 2024[98]. - The vehicle transportation services segment reported a significant revenue decline of 93.4% year-over-year, with Q3 2025 revenue at $1.0 million compared to $15.1 million in Q3 2024[98]. - Total powersports revenue for Q3 2025 increased by $0.1 million compared to Q3 2024, driven by higher sales of pre-owned retail vehicles and increases in finance and insurance (F&I) and parts, service, and accessories (PSA) revenue[102]. - Total powersports revenue for the nine months ended September 30, 2025, decreased by $77.2 million compared to the same period in 2024, primarily due to a lower volume of retail units sold[103]. - Vehicle transportation services revenue for Q3 2025 decreased by $14.1 million compared to Q3 2024, with vehicles transported dropping by 22,825 units[106]. Profitability - Gross profit for the powersports segment increased by 13.0% year-over-year to $26.9 million in Q3 2025, while total gross profit for the nine months was $227.1 million, down 8.0% from $246.8 million in 2024[98]. - Total gross profit for Q3 2025 increased by $4.9 million, with total gross profit per retail vehicle rising by $228 compared to Q3 2024[104]. - Total gross profit for the nine months ended September 30, 2025, decreased by $11.2 million, mainly due to lower retail vehicle sales volumes[105]. - Operating income for Q3 2025 was $9.4 million, an increase of 77.4% from $5.3 million in Q3 2024, while the nine-month operating loss was $5.6 million compared to a profit of $25.9 million in the same period of 2024[98]. - Net loss for Q3 2025 was $4.1 million, a 63.4% improvement from a net loss of $11.2 million in Q3 2024, with a nine-month net loss of $46.0 million compared to $22.2 million in 2024[98]. Expenses and Cost Management - Selling, general and administrative (SG&A) expenses for Q3 2025 were $64.4 million, a decrease of $1.5 million compared to Q3 2024, primarily due to cost-saving initiatives[107]. - SG&A as a percentage of gross profit improved to 84.7% in Q3 2025, down 400 basis points from 88.7% in Q3 2024[107]. - Depreciation and amortization expenses decreased to $2.2 million in Q3 2025, down $0.9 million from Q3 2024, primarily due to certain intangible assets becoming fully amortized[111]. - The company recorded a $34.0 million charge for impairment of franchise rights in the year-to-date period due to prolonged economic uncertainty[112]. Cash Flow and Debt - Total cash and restricted cash as of September 30, 2025, was $51.8 million, a decrease from $96.7 million as of December 31, 2024[119]. - The company had $442.8 million in total debt as of September 30, 2025, compared to $461.0 million at the end of 2024[121]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $15.5 million, a decrease of $53.1 million compared to $68.6 million in 2024[123]. - Cash used in investing activities for the nine months ended September 30, 2025, was $5.1 million, compared to $2.7 million in 2024, an increase of $2.4 million[127]. - Cash used in financing activities for the nine months ended September 30, 2025, was $55.3 million, a decrease of $20.9 million from $76.2 million in 2024[128]. - The company expects annualized cash payments for interest expense to be $3.4 million lower due to the recent amendment of the Credit Agreement[128]. - As of September 30, 2025, the company had $131.1 million available under powersports inventory financing credit facilities, down from $146.2 million at the end of 2024[119]. - The company anticipates that current cash balances plus cash generated from operations will be sufficient to meet operating and capital requirements for at least the next twelve months[120]. Strategic Focus - The company operated 53 retail dealerships as of September 30, 2025, primarily located in the Sunbelt region, focusing on both new and pre-owned powersports vehicles[88]. - The powersports segment's total gross profit per unit sold increased, reflecting improved profitability despite lower overall sales volume[94]. - The company continues to enhance brand awareness and optimize vehicle sourcing strategies to improve sales performance in both segments[90]. - The company has grown primarily through acquisitions since its incorporation in 2013, indicating a strategic focus on market expansion[87]. - The company expects the lower volume in the vehicle transportation services segment to continue for the remainder of the year due to staffing challenges[106].