管理層發言
Good afternoon, ladies and gentlemen, and welcome to RideNow Group, Inc. Second Quarter 2026 Earnings Conference Call. This call is being recorded on Tuesday, August 11, 2026. I would now like to turn the conference over to Jerene Makia, Vice President of Finance. Please go ahead.
Thank you, Operator. Good afternoon, everyone, and thank you for joining us for RideNow's second quarter 2026 earnings conference call. Joining me on the call today are Michael Quartieri, RideNow's Chairman, Chief Executive Officer, and President, and Josh Barsetti, RideNow's Executive Vice President and Chief Financial Officer. Our second quarter results are detailed in the press release issued this afternoon, and supplemental information will be available in our Form 10-Q once filed. Before we begin, I would like to remind you that comments made by management during this conference call may contain forward-looking statements, including, but not limited to RideNow's market opportunities and future financial results. All forward-looking statements involve risks and uncertainties which could affect RideNow's actual results and cause actual results to differ materially from forward-looking statements made by or on behalf of RideNow.
A discussion of material risks and important factors that could affect our actual results can be found in our filings with the SEC, which are available on our Investor Relations website and at sec.gov. This conference call also contains time-sensitive information that is accurate only as of the date of this live broadcast, Tuesday, August 11, 2026. RideNow assumes no obligation to revise or update any forward-looking statements, whether written or oral, to reflect events or circumstances after the date of this conference call, except as required by law. Also, the following discussion contains non-GAAP financial measures. For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures, please refer to our earnings release published today and available on our Investor Relations website. Now I'll turn the call over to Michael Quartieri.
Thanks, Jerene. Good afternoon, everyone, and thank you for joining us for RideNow's second quarter 2026 earnings call. The strong momentum we built during the second half of 2025 has continued through the first half of 2026. I'm proud to report that our Q2 2026 same-store revenue reached $291.7 million, up 3% over the prior year period. Furthermore, adjusted EBITDA rose to $20.5 million, a 19.2% increase year over year. As we advance through our turnaround, we continue to capture incremental wins and absorb valuable lessons. We are still in the early innings. This makes it essential to keep a level head, maintain diligent effort, and stay laser focused on what we can control within the four walls of our business. By prioritizing strategic execution and continuous improvement, both in our stores and across our corporate support center, we are driving the positive momentum reflected in our results today.
Our balanced tactical plan combines near-term operational improvements with structural changes to advance our long-term strategic direction, ultimately creating sustained value for our shareholders. Our near-term initiatives—securing the right leadership, maintaining a disciplined focus on cost efficiency, and reinstating operational rigor across all stores—continue to progress. With each step, we position the company for greater operating leverage. Our team is fully aligned around clear goals and a culture of accountability. Beyond our improved financial performance, we achieved several key milestones during the quarter. We were added to the Russell 2000 Index, secured a new $20 million used floor plan facility, and expanded our floor plan capacity for new products. We also completed the relocation of our Tallahassee and Gainesville, Florida stores into integrated and upgraded facilities.
Most importantly, we made substantial progress on our refinancing efforts, and I look forward to sharing more details on that front in the near future. Each of these achievements is a direct testament to our operational momentum. Looking ahead, we are well positioned to build on this foundation. We expect to continue to deliver strong levels of adjusted EBITDA and free cash flow throughout the remainder of 2026. As always, we will deploy this capital with a strict discipline of an owner-oriented company. Moving forward, our financial strength positions us to return to growth through highly accretive acquisitions, which remain a key pillar of our long-term value strategy. With that, I will turn the call over to Josh for a more detailed review of the second quarter financial results.
Thanks, Mike, and good afternoon, everyone. I'll start by reviewing our financial results for the second quarter of 2026, followed by an overview of our balance sheet. During the quarter, we generated total revenue of $296.8 million, compared to $299.9 million in the prior year quarter. This decrease was predominantly driven by our store consolidation efforts, which resulted in operating five fewer stores during the current quarter as compared to the prior year quarter. Additionally, adjusted EBITDA increased 19.2% to $20.5 million, up from $17.2 million in the second quarter of 2025. Adjusted SG&A expenses were $62.8 million, or 74.1% of gross profit, down 3.3% compared to $64.9 million or 77.4% of gross profit in the same quarter last year. During the quarter, we sold 16,626 units, down 491 units, or 2.9%, from the same quarter last year. Total new retail unit sales were 10,807, up 189 units, or 1.8%, compared to Q2 of last year, and pre-owned retail units totaled 4,924, down 359 units, or 6.8%.
Higher total unit volume led to a $1.1 million improvement in gross profit dollars, which totaled $84.8 million during the second quarter of 2026. New unit gross margins improved to 14.8% for the quarter, compared to 13.2% for the same quarter last year, while pre-owned gross margins decreased from 18.8% in last year's second quarter to 18.0% in the second quarter of the current year. Our fixed operations business, consisting of parts, service, and accessories, delivered $50.1 million in revenue and $24.2 million in gross profit. Additionally, our finance and insurance teams delivered $27 million in revenue, down $200,000 compared to $27.2 million in the prior year's quarter. For the six months ended June 30th, revenue was up $12.6 million to $557.2 million, as compared to $544.6 million for the prior year period. Gross profit was $156.4 million for the first half of the year, compared to $151.1 million in the prior year period.
Adjusted EBITDA was $29.8 million, up from $23.2 million, an increase of $6.6 million over the prior year period. On a same-store basis, which excludes the five stores permanently closed in the prior year and any fleet-related units, revenue was $291.5 million during the second quarter of 2026 as compared to $282.9 million in 2025, a 3% increase. Total same-store gross profit was $83 million this year, compared to $81.4 million in the prior year period, a 2% increase. Q2 marks the fourth consecutive quarter of same-store growth in revenue and units sold, and the fifth consecutive quarter of same-store growth in gross profit. For the six months ended June 30th, same-store revenue was up $37.9 million to $549.7 million as compared to $511.8 million in the prior year period. Gross profit was $154 million in the first half of the year compared to $145.2 million in the prior year period. Turning to the balance sheet, we ended the quarter with $63.1 million in total cash, inclusive of restricted cash.
As Mike mentioned earlier, we secured a $20 million used floor plan facility and added additional floor plan availability for new products. The used floor plan will replace our existing related-party floor plan line, which will wind down this month. At the end of the quarter, our availability under short-term revolving floor plan credit facilities totaled approximately $95.1 million, and total available liquidity, defined as total cash plus availability under floor plan credit facilities, totaled $158.2 million at the end of the quarter. Additionally, non-vehicle net debt was $174.4 million. Cash outflows from operating activities was $28.2 million for the six months ended June 30, 2026. Effective this quarter, we will now report adjusted free cash flow as a non-GAAP measure. Adjusted free cash flow is defined as cash flows used in or provided by operating activities adjusted for net activity from our non-trade floor plan facilities and any cash flows associated with business acquisitions and dispositions, less purchases of capital expenditures.
For the six months ended June 30th, adjusted free cash flow was $20.8 million, compared to $2.9 million for the same period in the prior year as the company drew down on our floor plan facilities to fund additional inventory. With that, we'd like to begin the question-and-answer session. I'll turn the call back over to the operator now to open the lines. Operator?
分析師問答
With that, your first question comes from the line of Eric Wold with Texas Capital.
A couple of questions. First, maybe just give us a sense of what you're seeing from the customer base that's coming into the stores. Do customers gravitate between new versus pre-owned, and what do you read from their decision there? Is there any major difference in discounting on the new vehicles versus pre-owned that would push them one way or another? Second, maybe taking a step further, where are you in inventories right now relative to where you'd want to be in total? You mentioned continued growth in private sales. Does that indicate it's become more difficult to get the pre-owned vehicles you would want given the competition in the marketplace?
I think what we've seen so far is it's been pretty consistent. It's really just a function of whether there's an OEM offer that's out there. What we've typically seen and experienced is something around the 0% financing or a very low interest rate is driving consumer behavior, as 65% of our customers are financing their units. So what tends to drive more volume for the OEMs is more around interest rate or money factor support as opposed to straight rebates. From a used inventory perspective, it's a competitive environment—not only with our dealership competitors, but also with the continued growth in private sales taking place in the marketplace.
On the inventory-on-hand piece, we are still fairly comfortable with where we are. We are in the low four-month range, which is really where we would like to be. If you break that out between used and new, new is a little bit on the higher side right now, and used is a little bit on the lower side of that four-month spectrum. But overall, we're still in a pretty good spot from an inventory perspective. When it comes to the used side of the equation, we feel like we have a pretty good mix of current products, and it's really a matter of meeting what the customer needs are as they walk in the door. We feel like we're in pretty good shape there as well.
One other bit of additional color is that we have the benefit of a cash offer tool that we can use to acquire inventory. However, a good portion of the inventory we acquire does not come from the wholesale market but rather through trade-ins. As more customers come in, we get opportunities through service or our call-to-action campaigns to acquire inventory. It's a different avenue we've pursued over the last year as we've expanded our digital marketing capabilities to hone in on that opportunity. So while it is a competitive environment, we are finding the inventory we want through trade-ins. When a trade-in is not desirable to us, that inventory goes straight to auction immediately. Our team focused on used inventory, led by Cam Tkach, our Chief Operating Officer, is on top of this regularly, and we feel very confident about our overall inventory position.
And your next question comes from the line of Alice Wycklendt with Baird.
I'm on for Craig today. I'm wondering if we can dial in a little on the consumer and how they've behaved with all the volatility in the headlines. Is there any discernible trend in traffic as macro events pop up?
When you look at the full year so far, we've seen a lot of good momentum in the first half, and that continued in Q2. We experienced a nice increase year over year in June. That said, given market volatility, we're seeing same-store sales that are down slightly year over year in the low single digits early in the current quarter. As much as macro trends can change to the downside, they can change to the upside as well. From our perspective, we can't control macro conditions, but we can control what takes place within the four walls of our operations, and that's what we're focused on.
That's helpful. On the credit side, any significant trends to call out? You mentioned interest rates on the promotional side driving consumers, but are you seeing any meaningful credit trends?
No, not at this point. We regularly review metrics from our third-party finance providers, including applicant credit scores and default rates, and we are not seeing meaningful changes throughout 2026.
One more on M&A: you've talked about returning to growth through accretive acquisitions. What does the landscape and pipeline look like today?
Our major focus right now is completing the refinancing, and we'll have more news to share in the coming weeks. Once that is completed, we'll be able to turn on the engine for finding the right acquisitions—whether tuck-ins to add a single-point dealer into our existing footprint to create more of an 'aircraft carrier' effect, or exploring entry into new markets where we currently don't operate.
I'm showing no further questions at this time, ladies and gentlemen. This now concludes today's conference call. Thank you all for joining. You may now disconnect.