RideNow Posts a $0.36 Per-Share Loss as Third-Quarter Sales and Adjusted Earnings Decline
Key Facts
RideNow Group posted a basic and diluted loss of $0.36 per share for the three months ended September 30, 2026, compared with a loss of $0.11 in the same period last year, according to the company’s results published on November 10. Revenue was $244.3 million, versus a consensus estimate of $292.98 million reported by Investing.com. Net loss widened to $13.9 million from $4.1 million a year earlier. The results show declines in sales and adjusted operating profitability alongside weaker demand for recreational vehicle units. The company said consumer spending on discretionary goods and pressure from implementing its new pricing model were among the factors affecting business performance.
Total retail sales of recreational vehicle units fell to 12,182 in the third quarter from 14,605 a year earlier, a decline of 16.6%, with decreases in both new and used units. Comparable sales revenue for the business fell 7.9%, which management attributed to a decline in units sold and lower discretionary consumer spending. The company also said the rollout of its Clear Price model in the market was among the factors behind the decline in comparable revenue. The model represents a change in pricing that the company is working to introduce to consumers, with management saying awareness is rising. Weaker sales weighed on gross profit, which fell to $65.5 million from $76.0 million, a decline of 13.8%.
Adjusted earnings before interest, taxes, depreciation and amortization fell to $5.3 million from $12.3 million in the third quarter of 2025, a decline of 56.9%. In contrast, the company cut selling, general and administrative expenses to $59.6 million from $64.4 million, saving $4.8 million compared with the same period. Management said it reduced costs by $4.6 million year over year during the quarter. It added that it expects additional cost savings at an annual rate of $10 million by the end of 2027 as part of its operational transformation efforts. The contrast between lower expenses and a decline in adjusted earnings highlights the impact of falling revenue and gross profit on quarterly performance.
On cash flow, RideNow recorded operating cash outflow of $41.7 million during the nine months ended September 30, 2026, after generating an inflow of $15.5 million in the same period of 2025. Adjusted free cash flow was $14.2 million, compared with $5.2 million a year earlier. The company said total available liquidity stood at $149.4 million on September 30, including available cash and remaining borrowing capacity under its inventory financing facilities. These figures present a mixed picture between operating cash flow and adjusted free cash flow, alongside available liquidity at the end of September. The company also announced the refinancing of its secured term loan with a new $220 million loan due in September 2031.
The company said it had entered advanced discussions on a $50 million secured, asset-based revolving credit facility. On the near-term outlook, management said it sees a fourth-quarter rebound as consumer awareness of the Clear Price model increases. It expects fourth-quarter adjusted earnings before interest, taxes, depreciation and amortization to exceed the third-quarter level, despite this running counter to the company’s usual seasonal pattern. Management gave this outlook as adjusted earnings and quarterly sales had declined from a year earlier. Management is scheduled to host a call to discuss the results on November 10, 2026, at 4:30 p.m. Eastern Time.
RideNow shares were steady after the results announcement, according to Investing.com. This followed the report of revenue of $244.3 million, which the site said was below the consensus estimate of $292.98 million. The steady share performance coincided with a wider quarterly loss, lower adjusted earnings and a decline in unit sales. The company also announced a refinancing of its term loan and plans for further cost cuts, while management is counting on improved adjusted earnings in the fourth quarter. The results call scheduled for November 10 will give management an opportunity to provide details on the quarter’s results and its operating plans.