Stock of the Day

September 10, 2020

RideNow Group (RDNW)

$5.94
+$0.01 (+0.2%)
Market Cap: $228.82M

About RideNow Group

RumbleOn, Inc. primarily operates as a powersports retailer in the United States. It operates in two segments, Powersports and Vehicle Transportation Services. The Powersports segment provides new and pre-owned motorcycles, all-terrain vehicles, utility terrain or side-by-side vehicles, personal watercraft, snowmobiles, and other powersports products. It also offers parts, apparel, accessories, finance and insurance products and services, and aftermarket products, as well as repair and maintenance services. The Vehicle Transportation Services segment provides asset-light transportation brokerage services facilitating automobile transportation. The company was formerly known as Smart Server, Inc. and changed its name to RumbleOn, Inc. in February 2017. The company was incorporated in 2013 and is based in Irving, Texas.

Today's Trend

RideNow Group, Inc. (NASDAQ: RDNW) moved lower today after mixed Q4/2025 results and a flurry of analyst notes. Management highlighted stronger profitability metrics and plans to resume acquisition growth, but the company still reported a quarterly loss, lower revenue versus year-ago periods and stretched profitability ratios — leaving investors weighing improving EBITDA against continued operating losses and modest analyst conviction.

  • Adjusted EBITDA growth — Powersports segment drove a $9.7M adjusted EBITDA in the quarter, a clear improvement in underlying profitability that management emphasized as evidence the business is stabilizing. Article Title
  • Same-store and unit trends improved in Q4 — the company reported growth in same-store revenue, gross profit and unit volume in the fourth quarter, suggesting operational momentum in core dealerships. Article Title
  • Management is targeting renewed acquisition growth — executives signaled M&A activity could resume, which could accelerate scale and revenue if execution follows through. Article Title
  • Earnings materials and call transcript available — full Q4/2025 press release and the earnings-call transcript are published for investors wanting detail on segment performance and management commentary. Article Title
  • Earnings-call highlights recap — analysts summarized the quarter as strong EBITDA growth despite revenue pressures; the highlights provide a quick read on drivers and risks. Article Title
  • Analyst target raised by Robert W. Baird — Baird increased its price target from $5.00 to $7.00 while keeping a neutral rating, signaling some upside potential tied to improving profitability. Article Title
  • Continued GAAP losses and margin pressure — RideNow reported Q4 EPS of ($0.17), revenue of $256.9M, a negative net margin (~9.4%) and deeply negative ROE, underscoring the company remains unprofitable on a GAAP basis. Article Title
  • DA Davidson keeps a cautious stance — DA Davidson reiterated a neutral rating and set a $6.00 price target, which is below the recent market level and signals limited near-term upside from that bench of analysts. Article Title

Bottom line for investors: improving adjusted EBITDA and signs of operational recovery are constructive, but the stock reaction reflects lingering GAAP losses, revenue softness and mixed analyst views — the trade will depend on whether management can convert EBITDA momentum into sustained, profitable growth or accelerate accretive acquisitions.