RideNow Group, Inc.
For the period ended Mar 31, 2026. Filed May 14, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 14, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Item 1. Financial Statements (Unaudited)
Item 1. Financial Statements.
Condensed Consolidated Balance Sheets
| March 31, 2026 | December 31, 2025 | |
|---|---|---|
| ASSETS · (Unaudited) | ||
| Current assets: | ||
| Cash | $30.2 | $29.5 |
| Restricted cash | 16.2 | 13.4 |
| Accounts receivable, net | 31.2 | 28.9 |
| Inventory, net | 302.5 | 257.4 |
| Prepaid expense and other current assets | 4.7 | 5.5 |
| Total current assets | 384.8 | 334.7 |
| Property and equipment, net | 60.2 | 60.5 |
| Right-of-use assets | 148.7 | 150.4 |
| Franchise rights | 127.0 | 127.0 |
| Other assets | 1.0 | 1.0 |
| Total assets | $721.7 | $673.6 |
| LIABILITIES AND STOCKHOLDERS' DEFICIT | ||
| Current liabilities: | ||
| Accounts payable and other current liabilities | $82.3 | $77.7 |
| Vehicle floor plan notes payable | 263.0 | 218.4 |
| Current portion of long-term debt | 0.9 | 0.4 |
| Total current liabilities | 346.2 | 296.5 |
| Long-term liabilities: | ||
| Long-term debt, net of current maturities | 210.4 | 207.2 |
| Operating lease liabilities | 126.4 | 128.0 |
| Other long-term liabilities, including finance lease obligation | 54.9 | 54.4 |
| Total long-term liabilities | 391.7 | 389.6 |
| Total liabilities | 737.9 | 686.1 |
| Commitments and contingencies | ||
| Stockholders' deficit: | ||
| Class A common stock, $0.001 par value, 50,000 shares authorized, 50,000 shares issued and outstanding | — | — |
| Class B common stock, $0.001 par value, 100,000,000 authorized; 38,622,673 issued and 38,499,584 outstanding as of March 31, 2026 and 38,325,595 issued and 38,202,506 outstanding as of December 31, 2025. | — | — |
| Additional paid-in capital | 704.7 | 704.1 |
| Accumulated deficit | (716.6) | (712.3) |
| Class B common stock in treasury, at cost, 123,089 shares | (4.3) | (4.3) |
| Total stockholders' deficit | (16.2) | (12.5) |
| Total liabilities and stockholders' deficit | $721.7 | $673.6 |
Unaudited Condensed Consolidated Statements of Operations
| Three Months Ended March 31, | ||
|---|---|---|
| 2026 | 2025 | |
| Revenue: | ||
| Powersports vehicles | $191.9 | $172.0 |
| Parts, service and accessories | 46.7 | 46.1 |
| Finance and insurance, net | 21.8 | 21.1 |
| Vehicle transportation services | — | 5.5 |
| Total revenue | 260.4 | 244.7 |
| Cost of revenue: | ||
| Powersports vehicles | 164.1 | 147.8 |
| Parts, service and accessories | 24.7 | 25.3 |
| Vehicle transportation services | — | 4.4 |
| Total cost of revenue | 188.8 | 177.5 |
| Gross profit | 71.6 | 67.2 |
| Selling, general and administrative | 62.1 | 61.1 |
| Depreciation and amortization | 1.9 | 2.3 |
| Operating income | 7.6 | 3.8 |
| Other (expense) income: | ||
| Floor plan interest expense | (2.4) | (2.8) |
| Other interest expense | (9.3) | (10.8) |
| Other (expense) income | (0.1) | 0.2 |
| Total other expense | (11.8) | (13.4) |
| Loss before income taxes | (4.2) | (9.6) |
| Income tax expense | 0.1 | 0.1 |
| Net loss | $(4.3) | $(9.7) |
| Weighted average shares - basic and diluted | 38,411,689 | 37,789,149 |
| Net loss per share - basic and diluted | $(0.11) | $(0.26) |
Unaudited Condensed Consolidated Statements of Stockholders' (Deficit) Equity
(amounts in millions)
| Common Shares · Additional Paid-in Capital · Accumulated Deficit · Treasury Shares · Total Stockholders’ Deficit | |||||||
|---|---|---|---|---|---|---|---|
| Class A · Class B · Shares · Amount | |||||||
| December 31, 2025 | 50,000 | 38,202,506 | $704.1 | $(712.3) | 123,089 | $(4.3) | $(12.5) |
| Stock-based compensation | — | 297,078 | 0.6 | — | — | — | 0.6 |
| Net loss | — | — | — | (4.3) | — | — | (4.3) |
| March 31, 2026 | 50,000 | 38,499,584 | $704.7 | $(716.6) | 123,089 | $(4.3) | $(16.2) |
| Common Shares · Additional Paid-in Capital · Accumulated Deficit · Treasury Shares · Total Stockholders’ Equity | |||||||
|---|---|---|---|---|---|---|---|
| Class A · Class B · Shares · Amount | |||||||
| December 31, 2024 | 50,000 | 37,717,842 | $700.9 | $(659.9) | 123,089 | $(4.3) | $36.7 |
| Stock-based compensation | — | 74,250 | (0.1) | — | — | — | (0.1) |
| Net loss | — | — | — | (9.7) | — | — | (9.7) |
| March 31, 2025 | 50,000 | 37,792,092 | $700.8 | $(669.6) | 123,089 | $(4.3) | $26.9 |
Unaudited Condensed Consolidated Statements of Cash Flows
(amounts in millions)
| Three Months Ended March 31, | ||
|---|---|---|
| 2026 | 2025 | |
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| Net loss | $(4.3) | $(9.7) |
| Adjustments to reconcile net loss to net cash used in operating activities: | ||
| Depreciation and amortization | 1.9 | 2.3 |
| Amortization of debt discount and issuance costs | 1.6 | 2.5 |
| Stock-based compensation | 0.6 | (0.1) |
| Interest paid-in-kind capitalized to debt principal | 1.2 | 0.8 |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | (2.3) | 3.7 |
| Inventory | (45.1) | (32.0) |
| Prepaid expenses and other assets | 0.8 | 0.9 |
| Other liabilities | 0.7 | 0.3 |
| Accounts payable and accrued liabilities | 4.6 | (0.1) |
| Floor plan trade note borrowings, net | 12.7 | 24.5 |
| Net cash used in operating activities | (27.6) | (6.9) |
| CASH FLOWS FROM INVESTING ACTIVITIES | ||
| Purchase of property and equipment | (0.6) | (0.5) |
| Technology development | (0.1) | — |
| Net cash used in investing activities | (0.7) | (0.5) |
| CASH FLOWS FROM FINANCING ACTIVITIES | ||
| Repayments of debt | (0.1) | (38.8) |
| Net increase in borrowings from non-trade floor plans | 31.9 | 6.5 |
| Other | — | (0.8) |
| Net cash provided by (used in) financing activities | 31.8 | (33.1) |
| NET CHANGE IN CASH AND RESTRICTED CASH | 3.5 | (40.5) |
| Cash and restricted cash at beginning of period | 42.9 | 96.7 |
| Cash and restricted cash at end of period | $46.4 | $56.2 |
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 –DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES
Description of Business
Effective August 13, 2025, we changed our corporate name to RideNow Group, Inc. (the “Company”) and updated the ticker symbol for our Class B common stock to RDNW on The NASDAQ Stock Market. Founded in 2013 and public since 2017, the Company has grown primarily through strategic acquisitions and, as of August 13, 2025, relocated its headquarters from Irving, Texas, to Chandler, Arizona.
Historically, the Company operated throughtwo segments: a powersports dealership group and a vehicle transportation services business. However, following the cessation of our asset-light transportation services at the end of December 2025, the Company now operates as a single operating and reportable segment focused exclusively on our powersports dealership group.
We operated 48 locations as of March 31, 2026, primarily situated in the Sunbelt region. We provide a comprehensive selection of new and pre-owned motorcycles, ATVs, side-by-sides (SXS), personal watercraft (PWC), and other powersports products.
Unless the context requires otherwise, references in these financial statements to “RideNow Group,” “RideNow,” the “Company,” “we,” “us,” and “our” refer to RideNow Group, Inc. and its consolidated subsidiaries.
Basis of Presentation
The accompanying Unaudited Condensed Consolidated Financial Statements of the Company and its wholly owned subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim information and with the instructions on Form 10-Q and Rule 8-03 of Regulation S-X pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for smaller reporting companies. In accordance with those rules and regulations, the Company has omitted certain information and notes required by GAAP for annual consolidated financial statements. In the opinion of management, these condensed consolidated financial statements contain all normal, recurring adjustments necessary for the fair presentation of the Company’s financial position and results of operations for the periods presented. Year-end balance sheet data was derived from audited financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 10-K”) filed with the SEC on March 13, 2026. The results of operations for the three months ended March 31, 2026 are not necessarily indicative of the results expected for the entire fiscal year. Intercompany accounts and material intercompany transactions have been eliminated.
Reclassifications
Certain prior year amounts have been reclassified to conform to the current year's presentation.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Estimates are used for items such as long-lived assets and franchise rights; fair values of acquired assets and liabilities under the acquisition method of accounting; inventory valuation; property depreciable lives; tax provisions; realization of deferred tax assets; expected credit losses; loss contingencies; lease classification; present value of right-of-use assets and lease liabilities; and the valuation of stock-based compensation and warrants. These estimates are based on management’s best knowledge of current events, historical experience, actions that the Company may undertake in the future and on various other assumptions that are believed to be reasonable under the circumstances. As additional information becomes available, or actual amounts are determinable, the recorded estimates are revised. Consequently, operating results can be affected by revisions to prior accounting estimates.
Recent Pronouncements Not Yet Adopted
Disaggregation of Income Statement Expenses
In November 2024, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2024-03, Disaggregation of Income Statement Expenses (Subtopic 220-40). The ASU requires the disaggregated disclosure of specific expense categories, including purchases of inventory, employee compensation, depreciation, and amortization, within relevant income statement captions. This ASU also requires disclosure of the total amount of selling expenses along with the definition of selling expenses. The ASU is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Adoption of this ASU can either be applied prospectively to consolidated financial statements issued for reporting periods after the effective date of this ASU or retrospectively to any or all prior periods presented in the consolidated financial statements. While early adoption is permitted, we do not currently plan to adopt this standard early. This ASU will likely result in additional disclosures being included in our consolidated financial statements, once adopted. We are currently evaluating the provisions of this ASU.
NOTE 2 –REVENUE
The following tables show revenue disaggregated by major lines of goods and services and timing of transfer of goods and services.
| Three Months Ended March 31, | ||
|---|---|---|
| ($ in millions) | 2026 | 2025 |
| Revenue | ||
| New vehicles | $135.0 | $120.1 |
| Pre-owned vehicles | 52.0 | 48.1 |
| Wholesale | 4.9 | 3.8 |
| Total powersports vehicles | 191.9 | 172.0 |
| Parts, service and accessories | 46.7 | 46.1 |
| Finance and insurance, net | 21.8 | 21.1 |
| Vehicle transportation services | — | 5.5 |
| Total revenue | $260.4 | $244.7 |
| Timing of revenue recognition | ||
| Goods and services transferred at a point in time | $240.6 | $221.1 |
| Goods and services transferred over time | 19.8 | 23.6 |
| Total revenue | $260.4 | $244.7 |
NOTE 3 –ACCOUNTS RECEIVABLE, NET
Accounts receivable consisted of the following:
| ($ in millions) | March 31, 2026 | December 31, 2025 |
|---|---|---|
| Contracts in transit(1) | $16.6 | $13.7 |
| Trade receivables(2) | 6.3 | 5.9 |
| Factory receivables(3) | 8.6 | 9.6 |
| 31.5 | 29.2 | |
| Less: allowance for doubtful accounts | 0.3 | 0.3 |
| $31.2 | $28.9 |
(1) Balance as of January 1, 2025 was $10.2 million.
(2) Balance as of January 1, 2025 was $13.7 million.
(3) Primarily amounts due from manufacturers for holdbacks, rebates, co-op advertising, warranty and supplies returns.
NOTE 4 –INVENTORY AND VEHICLE FLOOR PLAN NOTES PAYABLE
Net inventory as of March 31, 2026 and December 31, 2025 were as follows:
| ($ in millions) | March 31,2026 | December 31,2025 |
|---|---|---|
| New powersports vehicles | $228.8 | $197.3 |
| Pre-owned powersports vehicles | 50.3 | 38.0 |
| Parts, accessories and other | 23.4 | 22.1 |
| Inventory, net | $302.5 | $257.4 |
New inventory costs are generally reduced by manufacturer holdbacks, incentives, floor plan assistance, and non-reimbursement-based manufacturer advertising rebates, while the related vehicle floor plan payables shown below are reflective of the gross cost of the powersports vehicle.
Vehicle Floor Plan Notes Payable
Floor plan notes payable as of March 31, 2026 and December 31, 2025 were as follows:
| ($ in millions) | March 31,2026 | December 31,2025 |
|---|---|---|
| Floor plans notes payable (trade) | $109.7 | $97.0 |
| Floor plans notes payable (non-trade)(1) | 153.3 | 121.4 |
| Floor plan notes payable | $263.0 | $218.4 |
(1) Includes a related-party pre-owned inventory floor plan line. See Note 12.
The Company relies on its floor plan vehicle financing credit lines (“Floor Plan Lines”) to finance new and pre-owned powersports vehicle inventory at its retail locations. Inventory serves as collateral under floor plan notes payable borrowings. The inventory balance in its entirety also serves as collateral under the Credit Agreement (as defined in Note 6). Floor plan notes payable (trade) reflects amounts borrowed to finance the purchase of specific new and, to a lesser extent, pre-owned powersports vehicle inventory with corresponding manufacturers' captive finance subsidiaries (“trade lenders”). Floor plan notes payable (non-trade) represents amounts borrowed to finance the purchase of specific new and pre-owned powersports vehicle inventories with non-trade lenders. Changes in vehicle floor plan notes payable (trade) are reported as operating cash flows, and changes in floor plan notes payable (non-trade) are reported as financing cash flows in the accompanying Unaudited Condensed Consolidated Statements of Cash Flows.
The vehicle floor plan payables may also be higher than the inventory cost due to the timing of the sale of a vehicle and payment of the related liability. Vehicle floor plan facilities are due on demand, but in the case of new vehicle inventories, are generally paid within a few business days after the related vehicles are sold.
New vehicle floor plan facilities generally utilize Secured Overnight Financing Rate (“SOFR”) or Average Daily Balance (“ADB”) based interest rates, which generally ranged between 6.5% and 16.0% as of March 31, 2026. Pre-owned vehicle floor plan facilities are based on prime or SOFR and range between 7.0% and 8.3% as of March 31, 2026. The aggregate capacity to finance our inventory under the new and pre-owned vehicle floor plan facilities was$362.3 million as of March 31, 2026.
NOTE 5 –FRANCHISE RIGHTS
Franchise rights as of March 31 were comprised of the following:
| ($ in millions) | March 31, 2026 | December 31, 2025 |
|---|---|---|
| Indefinite-lived intangible assets: | ||
| Franchise rights(1) | $127.0 | $127.0 |
| Goodwill(2) | — | — |
| Total franchise rights | $127.0 | $127.0 |
(1) Attributed to the Company's powersports reporting unit.
(2) As a result of the Company’s decision to cease operating the vehicle transportation services business, the Company determined the goodwill associated with the vehicle transportation services business had been impaired. Accordingly, in December 2025, the Company recorded an impairment charge of $0.8 million, which represents the entire balance of goodwill.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.