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IRVING, Texas - RumbleOn Inc. (NASDAQ:RMBL) shares surged 13.5% despite reporting second-quarter results that missed analyst expectations, as investors focused on the company’s rebranding initiative and credit facility amendments.
The powersports retailer reported a second-quarter loss of -$0.85 per share, significantly worse than the analyst estimate of $0.01. Revenue came in at $299.9 million, below the consensus estimate of $307.29 million and down 11% from $336.8 million in the same quarter last year. The revenue decline was driven by a 590-unit decrease in powersports segment sales and a $13.9 million drop in vehicle transportation services revenue.
Despite the earnings miss, the company announced it will rebrand as RideNow Group, Inc. and relocate its corporate headquarters back to the Phoenix area, effective August 13. The company also amended its credit facility, extending the maturity of its term loan through September 2027 with a 50-basis point reduction in interest.
"I am pleased to report that we are making good progress and our operating results improved over the course of the second quarter," said Michael Quartieri, Chairman, CEO and Interim CFO. "While performance in the second quarter was nowhere close to where we want and expect to be, the Company’s ’back to our roots’ strategy is working and driving improvement in our year over year results."
The company reported an adjusted EBITDA of $17.2 million, up 6.2% from $16.2 million in the second quarter of 2024, despite the revenue decline. RumbleOn also reduced its selling, general and administrative expenses by $4.7 million to $66.7 million.
The quarter included a $34 million impairment charge related to franchise rights, contributing to a net loss of $32.2 million compared to a $0.7 million loss in the same period last year.
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