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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's Q3 2025 Earnings: A Step in the Right Direction

RideNow reported revenue of $281 million and adjusted EBITDA of $12.3 million for Q3 2025, representing a decline of 4.7% in revenue but an increase of over 80% in adjusted EBITDA compared to the same quarter last year. The company's actual EPS came out at -$0.10775, beating estimates of -$0.12333. The powersports segment saw a 3.9% increase in total major unit sales, with new unit sales up 1.7% and pre-owned unit sales up 3.3% year-over-year.

Publication Date: Nov -19

📋 Highlights
  • Revenue and Adjusted EBITDA Growth: Q3 revenue totaled $281 million, with adjusted EBITDA reaching $12.3 million, up 80% YoY despite a 4.7% revenue decline.
  • Powersports Unit Sales Growth: Total major unit sales rose 3.9% YoY (15,949 units), driven by 1.7% growth in new units (9,904) and 3.3% in pre-owned units (4,701).
  • Fixed Operations Performance: Fixed operations generated $50.8M revenue and $23.9M gross profit, with GPU increasing 3% YoY to $1,636.
  • Pre-Owned Inventory Strategy: Disciplined inventory buying for the spring 2026 season, leveraging improved pricing/margins and higher-quality inventory.

Operational Highlights

The company's powersports segment achieved year-over-year improvement in revenue, new and pre-owned unit sales, and gross profit dollars, marking the first quarter post-COVID where this has been achieved. The fixed operations business, consisting of parts, service, and accessories, delivered $50.8 million in revenue and $23.9 million in gross profit, with GPU for the fixed operations business increasing by 3% to $1,636. As Michael Quartieri noted, "We see positive momentum from the start of the year with pricing and margins on the pre-owned vehicle side of the business."

Strategic Initiatives

RideNow is taking a disciplined approach to buying more inventory on the pre-owned side of the business ahead of the spring selling season next year, focusing on buying the right inventory that they know they can make a profit on. The company's aircraft carrier strategy involves consolidating smaller locations into larger existing locations, working with OEM partners to preserve market share and brand in those markets.

Outlook and Valuation

With analysts estimating revenue growth of 7.7% next year, RideNow's current valuation metrics are worth examining. The company's P/S Ratio stands at 0.13, indicating a relatively low revenue multiple. However, the EV/EBITDA ratio is high at 489.6, suggesting that the market is pricing in significant future growth. The company's ROE and ROIC are negative, at -308.02% and -7.74% respectively, indicating that there is still work to be done to improve 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: 4.6/10

Value: 4.6

Growth: 4.2

Quality: 3.7

Yield: 0.0

Momentum: 9.5

Volatility: 5.7

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Driven Brands

A-Score: 4.5/10

Value: 6.0

Growth: 5.3

Quality: 3.0

Yield: 0.0

Momentum: 7.0

Volatility: 5.7

1-Year Total Return ->

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Cars

A-Score: 4.3/10

Value: 7.2

Growth: 5.4

Quality: 6.3

Yield: 0.0

Momentum: 2.5

Volatility: 4.3

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Vroom

A-Score: 3.6/10

Value: 8.2

Growth: 4.6

Quality: 4.0

Yield: 0.0

Momentum: 5.0

Volatility: 0.0

1-Year Total Return ->

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America's Car-Mart

A-Score: 3.6/10

Value: 8.7

Growth: 3.6

Quality: 5.4

Yield: 0.0

Momentum: 1.5

Volatility: 2.7

1-Year Total Return ->

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RumbleON

A-Score: 3.3/10

Value: 8.0

Growth: 5.2

Quality: 2.9

Yield: 0.0

Momentum: 3.0

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