Financial Data and Key Metrics Changes - The company generated $244.7 million of adjusted EBITDA in Q1 2025, down slightly compared to the same quarter last year despite a 20.5% decline in revenue [11][12] - Total adjusted SG&A expenses were $57.5 million, representing 85.6% of gross profit, down from $72.6 million or 87.9% of gross profit in the same quarter last year [12] - Cash outflows from operating activities were $6.9 million for Q1 2025, compared to cash inflows of $17 million for the same period in 2024 [17] Business Line Data and Key Metrics Changes - The Powersports Group sold 13,186 total major units, down 20.5% year over year, with new unit sales down 23.7% and pre-owned unit sales down 13.9% [13] - Gross margins for new units improved to 13.5% from 12.5% year over year, while pre-owned gross margins were 16.3%, down from 19.5% [13] - Revenue from the powersports dealership group was $239.2 million, down 18.5% year over year, primarily due to lower major unit volume [16] Market Data and Key Metrics Changes - The asset light vehicle transportation services segment, Wholesale Express, saw revenue decline by 61.5% year over year, with gross profit decreasing 68.6% to $1.1 million [16] - The overall decline in unit sales during the quarter impacted revenue and gross profit across various segments [14][15] Company Strategy and Development Direction - The company is focused on improving operational discipline and customer service amidst a challenging macroeconomic environment [10] - New key management additions aim to strengthen market position and drive long-term growth [8] - The company is actively evaluating opportunities to optimize capital structure and lower cost of capital [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges due to tariffs and a difficult consumer backdrop but expressed confidence in the company's strategic initiatives [9][10] - The company expects 2025 results from the Wholesale Express segment to decline significantly from 2024 but believes it is better positioned for sustainable long-term growth [11] Other Important Information - The company ended the quarter with $56.2 million in total cash and $188.2 million in non-vehicle net debt [17] - Total available liquidity was $171.4 million as of March 31, 2025 [17] Q&A Session Summary Question: How aggressive does the company want to be with the cash offer tool for pre-owned inventory? - The company can be aggressive with the cash offer tool, but it depends on the quality of the inventory available [20][21] Question: What are the expectations for year-end inventory levels? - The company expects inventory levels at year-end to be about where they ended in 2024, possibly slightly higher due to inflation [23][24] Question: What is the message from OEM partners regarding tariffs? - OEM partners are currently absorbing tariff costs, and there is hope that the situation will stabilize in the near future [27][28][30]

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 ...

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]