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1. Company Snapshot

1.a. Company Description

RumbleON, Inc.operates a technology-based omnichannel platform to aggregate and distribute pre-owned vehicles in North America.It operates through three segments: Powersports, Automotive, and Vehicle Logistics.


The Powersports segment distributes motorcycles.The Automotive segment distributes cars and trucks.The Vehicle Logistics segment provides automotive transportation services between dealerships and auctions.


Its platform offers ability to buy, sell, trade, and finance new and pre-owned vehicles online or in store for dealers and consumers.The company was formerly known as Smart Server, Inc.and changed its name to RumbleON, Inc.


in February 2017.RumbleON, Inc.was incorporated in 2013 and is based in Irving, Texas.

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1.b. Last Insights on RMBL

Recent negative drivers behind RumbleON, Inc.'s stock performance include the company's $10.0 million fully backstopped registered rights offering, which may have diluted existing shareholders' value. Additionally, the recent leadership changes, including the appointment of a new CEO and COO, may have created uncertainty and instability within the company. The lack of a clear direction and strategy under new leadership may be weighing on investor sentiment.

1.c. Company Highlights

2. RideNow Group Q4 2025: EBITDA Surge Amid Revenue Dip

RideNow Group reported Q4 revenue of $256.9 million, down 4.6% YoY largely due to the shutdown of its Wholesale Express business, but adjusted EBITDA leapt 341% to $9.7 million from $2.2 million a year earlier. The company’s full‑year adjusted EBITDA reached $46.2 million, up 40.4% YoY, while gross profit stood at $298 million on $1.08 billion of revenue. Net earnings per share fell to –$0.16798 versus analysts’ estimate of –$0.16, reflecting the company’s ongoing restructuring costs. Management highlighted that the tactical plan, which balances near‑term initiatives to improve financial performance and structural changes to reset the strategic direction of the company, is driving long‑term value creation for shareholders (staff). Cash and restricted cash totaled $42.9 million, with non‑vehicle net debt of $189.3 million and a short‑term revolving floor plan credit facility of $123.1 million. Valuation metrics show a negative P/E of –2.7, a P/S ratio of 0.13 and an EV/EBITDA of –303.1, underscoring the company’s loss‑bearing status yet high free‑cash‑flow yield of 12.23%.

Publication Date: Apr -13

📋 Highlights
  • Adjusted EBITDA Surge: Q4 adjusted EBITDA jumped 341% to $9.7M versus $2.2M in Q4 2024, despite Wholesale Express shutdown.
  • Revenue Decline Mitigated: Total revenue fell to $256.9M from $269.6M YoY, but core revenue (excluding Wholesale Express) remained flat.
  • Unit Sales Growth: Major unit sales increased 1.9% to 15,642 units, reflecting improved operational execution.
  • Full-Year Financial Strength: 2025 revenue reached $1.08B with $298M gross profit, and adjusted EBITDA rose 40.4% to $46.2M.
  • Liquidity and Debt Position: Ended Q4 with $42.9M cash, $189.3M non-vehicle net debt, and $123.1M in credit facility availability.

Operational Performance

The company sold 15,642 major units in Q4, up 1.9% YoY, while revenue excluding Wholesale Express remained flat, indicating stable core demand. The shutdown of Wholesale Express at the end of December was the primary driver of the revenue decline, yet unit sales continued to grow modestly.

Strategic Outlook

RideNow’s tactical plan focuses on tightening execution and continuous improvement across all operations, with an emphasis on near‑term initiatives that should generate immediate financial upside. Management expects momentum to carry into Q1 as the macro environment improves, supporting the company’s outlook for a modest revenue decline of –0.4% next year.

Valuation Snapshot

At the close of Q4, RideNow trades at a P/E of –2.7, P/B of –11.31, and P/S of 0.13, while its EV/EBITDA stands at –303.1, reflecting the company’s current loss profile. Despite negative ROIC of –0.22% and ROE of –7,485.71%, the free‑cash‑flow yield of 12.23% suggests potential upside if the turnaround accelerates and the company can convert its operational gains into profitability.

3. NewsRoom

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RumbleOn Rebrands as RideNow Group, Announces HQ Move and New Structure for Dealership Operations

Aug -13

Source: prnewswire.com

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RumbleOn, Inc. (RMBL) Q2 2025 Earnings Call Transcript

Aug -11

Source: seekingalpha.com

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RumbleOn, Inc. Reports Second Quarter 2025 Financial Results

Aug -11

Source: prnewswire.com

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RumbleOn Announces Second Quarter 2025 Earnings Release and Conference Call Schedule

Aug -05

Source: prnewswire.com

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RumbleOn, Inc. (RMBL) Q1 2025 Earnings Call Transcript

May -10

Source: seekingalpha.com

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RumbleOn Reports First Quarter 2025 Financial Results

May -07

Source: prnewswire.com

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RumbleOn Announces First Quarter 2025 Earnings Release and Conference Call Schedule

Apr -30

Source: prnewswire.com

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RumbleOn, Inc. (RMBL) Q4 2024 Earnings Call Transcript

Mar -11

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.51%)

6. Segments

Powersports

Expected Growth: 4.5%

RumbleON's Powersports segment growth of 4.5% is driven by increasing demand for outdoor recreational activities, rising popularity of adventure tourism, and growing consumer spending on experiential lifestyle. Additionally, the company's strategic expansion into new markets, investments in digital marketing, and focus on providing a seamless customer experience are contributing to the segment's growth.

Vehicle Transportation Services

Expected Growth: 4.8%

RumbleON's 4.8% growth in Vehicle Transportation Services is driven by increasing online marketplaces adoption, rising demand for used vehicles, and strategic partnerships with dealerships and OEMs. Additionally, the company's focus on digital retailing, competitive pricing, and efficient logistics management contribute to its growth momentum.

7. Detailed Products

RumbleON Marketplace

A platform that allows consumers to buy and sell new and used vehicles, including motorcycles, RVs, and boats.

RumbleON Auctions

A platform that allows dealerships to auction vehicles to other dealerships, wholesalers, and exporters.

RumbleON Wholesale

A platform that allows dealerships to purchase vehicles at wholesale prices from other dealerships, auctions, and wholesalers.

RumbleON Retail

A platform that allows consumers to purchase vehicles directly from RumbleON's inventory.

RumbleON Powersports

A platform that allows consumers to purchase new and used powersports vehicles, including motorcycles, ATVs, and UTVs.

8. RumbleON, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

RumbleON, Inc. operates in the used motorcycle and powersports industry, which has a moderate threat of substitutes. While there are alternative modes of transportation, motorcycles and powersports vehicles have a unique appeal to enthusiasts, limiting the threat of substitutes.

Bargaining Power Of Customers

RumbleON, Inc. has a large customer base, and individual customers do not have significant bargaining power. The company's online platform and wide selection of vehicles also reduce the bargaining power of customers.

Bargaining Power Of Suppliers

RumbleON, Inc. relies on a network of suppliers for its inventory of used motorcycles and powersports vehicles. While the company has some bargaining power due to its scale, suppliers still have some negotiating power, particularly for rare or high-demand vehicles.

Threat Of New Entrants

RumbleON, Inc. operates in a niche market with significant barriers to entry, including the need for specialized knowledge and infrastructure. The company's established brand and scale of operations also make it difficult for new entrants to compete.

Intensity Of Rivalry

RumbleON, Inc. operates in a competitive market with several established players. The company's online platform and focus on used vehicles create a high level of rivalry, as competitors can easily compare prices and offerings.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 85.79%
Debt Cost 7.24%
Equity Weight 14.21%
Equity Cost 14.34%
WACC 8.25%
Leverage 603.69%

11. Quality Control: RumbleON, Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Kingsway Financial Services

A-Score: 5.1/10

Value: 4.8

Growth: 4.2

Quality: 6.0

Yield: 0.0

Momentum: 9.5

Volatility: 6.0

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Cars

A-Score: 4.1/10

Value: 6.5

Growth: 5.3

Quality: 6.3

Yield: 0.0

Momentum: 1.5

Volatility: 4.7

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Vroom

A-Score: 3.9/10

Value: 8.4

Growth: 4.4

Quality: 5.2

Yield: 0.0

Momentum: 5.0

Volatility: 0.7

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America's Car-Mart

A-Score: 3.7/10

Value: 10.0

Growth: 3.6

Quality: 5.3

Yield: 0.0

Momentum: 0.5

Volatility: 2.7

1-Year Total Return ->

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Driven Brands

A-Score: 3.4/10

Value: 4.1

Growth: 5.3

Quality: 1.6

Yield: 0.0

Momentum: 3.5

Volatility: 5.7

1-Year Total Return ->

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RumbleON

A-Score: 3.1/10

Value: 8.0

Growth: 5.2

Quality: 2.8

Yield: 0.0

Momentum: 1.5

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.71$

Current Price

3.71$

Potential

-0.00%

Expected Cash-Flows