• Revenue: $269.6 million for Q4 2024, down 13.4% year over year.
• Adjusted EBITDA: $2.2 million for Q4 2024, up from a slight loss in the same quarter last year.
• Adjusted SG&A Expenses: $62.3 million, 22.9% lower than the same quarter last year.
• Power Sports Major Units Sold: Approximately 14,100 units in Q4, down 9.3% year over year.
• New Power Sports Unit Sales: Approximately 10,200 units, down 9.5% year over year.
• Pre-owned Unit Sales: Approximately 3,900 units, down 8.8% year over year.
• New Unit Gross Margins: 10.8% for Q4, compared to 13.2% in the same quarter last year.
• Pre-owned Gross Margins: 9.8% for Q4, compared to negative 10.3% in the same quarter last year.
• Parts, Service, and Accessories Revenue: $47.2 million with a gross profit of $22 million.
• Financing and Insurance Revenue: $22.6 million, with a GPU of $1,600, down 8.9% year over year.
• Total Company Revenue for Full Year: Approximately $1.2 billion, down 11.5% year over year.
• Total Company Adjusted EBITDA for Full Year: $32.9 million, down 12% year over year.
• Total Cash: $96.7 million at the end of the quarter.
• Non-Vehicle Debt: $182.1 million at the end of the quarter.
• Cash Inflows from Operating Activities: $99.4 million for the 12 months ended December 31, 2024.

• Warning! GuruFocus has detected 7 Warning Signs with RMBL.

Release Date: March 11, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• RumbleON Inc (NASDAQ:RMBL) exceeded its inventory reduction goal, reducing new inventories by over $80 million, surpassing the initial target of $50 million.
• The company reported an increase in adjusted EBITDA for the fourth quarter of 2024, compared to a slight loss in the same quarter last year.
• RumbleON Inc (NASDAQ:RMBL) successfully completed a $30 million capital raise, enhancing its cash position and liquidity.
• The company repaid all outstanding $38.8 million of convertible notes shortly after the close of fiscal 2024, improving its debt profile.
• RumbleON Inc (NASDAQ:RMBL) is focusing on streamlining its cost structure and standardizing systems to build a strong foundation for future growth.

Negative Points

• Revenue for the fourth quarter of 2024 was down 13.4% year over year, indicating a decline in sales performance.
• The Power Sports Dealership Group experienced a 9.3% decrease in total power sports major units retailed during the quarter.
• Gross margins for new unit sales decreased to 10.8% from 13.2% in the same quarter last year, due to overstocking and exiting non-core product lines.
• The asset light vehicle transportation brokerage business, Wholesale Express, is expected to see a significant reduction in volumes in 2025 due to leadership changes and broker turnover.
• RumbleON Inc (NASDAQ:RMBL) faces potential challenges from global tariffs, which could impact the affordability of products and customer demand.

Q & A Highlights

Q: Can you provide more color on your exposure to tariffs and how you plan to handle potential cost increases? A: Michael Quartieri, CEO: Our top three OEMsPolaris, BRP, and Harley Davidsonaccount for 60% to 65% of our sales. The impact of tariffs is uncertain and changes frequently. OEMs might absorb the tariffs or pass them to consumers, and we will be in the middle. It's too early to quantify the impact.

Q: Are you seeing any slowdown in business due to consumer issues or tariffs? A: Michael Quartieri, CEO: We don't provide in-quarter commentary, but like others, we face consumer challenges such as interest rates and potential tariffs. We focus on controlling what happens within our operations.

Q: How do you feel about your current inventory levels and the rest of the industry's inventory? A: Michael Quartieri, CEO: We are comfortable with our new inventory levels after last year's adjustments. Parts inventory is slightly high but not significant. Industry-wide, promotional activities might continue to affect gross margins.

Q: Will there be ongoing promotional activity affecting gross margins? A: Michael Quartieri, CEO: Promotional activities will persist, influenced by tariffs and OEM strategies. It's an evolving situation, and we will adapt based on competitor actions and OEM support.

Q: Can you comment on the financial performance and strategic focus moving forward? A: Michael Quartieri, CEO: We aim to enhance revenue, right-size the organization, and grow EBITDA and free cash flow. Our focus is on profitability, growth, and shareholder value, moving away from the Vision 2026 plan.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.