RumbleOn reports Q1 revenue drop, narrows loss

RumbleOn, Inc., the largest powersports retailer in North America, reported a 20.5% year-over-year decline in revenue for the first quarter of 2025, totaling $244.7 million. The drop was largely attributed to a significant slowdown in powersports unit sales and a steep decline in vehicle transportation activity.

Despite lower revenues, RumbleOn slightly narrowed its net loss to $9.7 million, compared to $10.3 million in the first quarter of 2024. The company also made meaningful progress on cost control, slashing its selling, general, and administrative expenses (SG&A) by $12.8 million to $61.1 million.

CEO and Chairman Michael Quartieri, who is also serving as interim CFO, expressed optimism – “Although we experienced a year-over-year volume decline in our powersports segment, the team is making progress on our turnaround initiatives.”

Key Q1 Metrics:

• Total revenue: $244.7 million (↓ 20.5%)
• Gross profit: $67.2 million (↓ 18.6%)
• Adjusted EBITDA: $7.0 million (↓ 9.1%)
• Operating cash flow: Outflow of $6.9 million (compared to $17.0 million inflow in Q1 2024)
• Total powersports unit sales: 13,186 (↓ 20.5%)
• Vehicle transportation services revenue: $5.5 million (↓ 61.5%)

The powersports segment saw a 23.7% drop in new vehicle sales and a 13.9% decline in pre-owned sales. However, gross profit per unit (GPU) improved by 5.2% to $5,365, signaling better margins despite fewer sales.

Meanwhile, RumbleOn’s vehicle transportation services saw a sharp 65% plunge in vehicle transports, contributing to a $8.8 million revenue decline for the segment.

On the balance sheet side, the company repaid $38.8 million in convertible senior notes and ended the quarter with $56.2 million in total cash and $171.4 million in available liquidity. Inventory rose to $272.6 million, while total liabilities slightly decreased to $712 million.